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Wth is CM1, CM2???? CM - Contribution Margin Contribution margin is the selling price per unit minus the variable cost per unit. CM1 = Contribution margin one= selling price- material costs - logistics costs. CM2= Contribution margin two= sellin

Day 4 Business Terms Contribution Margin – The Profit Clue Most Businesses Ignore Most founders talk about revenue and profit… but ignore what really drives profitability: Contribution Margin. What is it? Contribution Margin = Revenue – Variable C

Mastering Unit Economics Unit economics isn’t just a metric—it’s your startup’s financial DNA. It reveals whether each customer adds value or drains cash. Here’s how to build your unit economics from scratch: 1. Define Your Economic Unit What drives

How to Calculate Product Cost, Set Profit & Selling Price - Using a Cost Sheet 🤔 Ever wondered how businesses actually price their products? It all starts with one simple but powerful tool: the Cost Sheet. 🚀🔥 Here’s how it helps: 1️⃣ Calculate

💰Learn Start-up Maths —( Concept - 2 )📊 💱 All details about “ COST ” Whenever someone asks you about the cost just tell him that “ Cost the amount of money that a business spends on the creation of something ” • There are many types of cost #

Decoding Unit Economics for Early-Stage Startups Unit economics is your startup’s compass. It tells you if scaling will make you rich—or broke. Here’s how to decode it, step by step: 1. Define a Unit: This could be a customer, order, or subscriptio

The ABCs of Entrepreneurship and Business As an entrepreneur or business professional, it's important to have a solid understanding of key terms and concepts. Here are some essential terms you should know: 1. Profit Margin: - Formula: Profit Margi

Profitability Metrics These are the stages of profitability every founder should be familiar with (Refer the table below) In the beginning, Start with Contribution margin (CM)- measure if your revenue covers variable costs. Next, target transacti

Revenue, Costs, and Profit: The Foundation of Business When running a business, understanding how money flows is crucial. The three essential elements are: Revenue: The total income from selling goods or services. Costs: Expenses incurred to operate

Startup Blueprint - Day 04 Business Model Refinement 1. Revenue Streams: Specify how your startup generates revenue (e.g., subscriptions, one-time sales). 2. Cost Structure: Break down fixed and variable costs (e.g., production, marketing, overhea