🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥
Login

Back

Vivek Joshi

Director & CEO @ Exc... • 23d

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 subscription—whatever drives revenue. 2. Calculate CAC (Customer Acquisition Cost): Total sales & marketing spend ÷ new customers acquired. 3. Determine LTV (Customer Lifetime Value): Average revenue per user × gross margin × customer lifespan. 4. Find Contribution Margin: Revenue per unit – variable costs. 5. Analyze Payback Period: How long does it take to recover your CAC? 6. Benchmark Your Ratios: Aim for LTV:CAC > 3 and CAC payback < 12 months. Insight: Great unit economics don’t guarantee product-market fit, but bad ones guarantee cash burn. Nail this early—it’s how you turn experiments into scalable, fundable businesses. Early signals matter. Watch them closely. Scale only when the unit math works.

0 replies10 likes
7

More like this

Recommendations from Medial

Vivek Joshi

Director & CEO @ Exc... • 21d

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

See More
0 replies3 likes
Image Description
Image Description

Swapnil gupta

Founder startupsunio... • 21d

✅ Must for Business Students 🥇10 Most Important metrics that are asked by investors. 1. Revenue Growth Rate 2. Monthly Recurring Revenue (MRR) 3. Burn Rate 4. Cash Runway 5. Gross Margin 6. Customer Acquisition Cost (CAC) 7. Customer Lifetime Val

See More
2 replies3 likes

Vivek Joshi

Director & CEO @ Exc... • 7d

Unlock the secrets of startup success with our comprehensive guide on Decoding Unit Economics! In this video, we break down the critical components that can determine the fate of your early-stage venture. Learn how to define your unit, calculate Cust

See More
0 replies2 likes

Swapnil gupta

Founder startupsunio... • 1m

🥇10 Most Important metrics that are asked by investors. 1. Revenue Growth Rate 2. Monthly Recurring Revenue (MRR) 3. Burn Rate 4. Cash Runway 5. Gross Margin 6. Customer Acquisition Cost (CAC) 7. Customer Lifetime Value (LTV) 8. Churn Rate 9. Unit

See More
0 replies5 likes
Image Description

mg

News & updates • 15d

CAC vs LTV – The Unit Economics Every Founder Must Know You’re getting users. You’re spending on ads. But is your startup actually making money per customer? If your CAC is higher than your LTV, you’re not building a business — you’re burning cash.

See More
2 replies14 likes
2
Image Description
Image Description

Ronak Patel

Here you go! • 10m

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

See More
9 replies12 likes
5
Image Description
Image Description

Vivek Joshi

Director & CEO @ Exc... • 1m

Crucial KPIs for founders, from inception to exit: Pre-Seed: Validate your idea! Focus on Problem-Solution Fit (qualitative user interviews, early sign-ups). Seed: Prove initial traction. Track Customer Acquisition Cost (CAC), Conversion Rates, and

See More
3 replies44 likes
82
Image Description

Aditya Malur

AI-Powered Product C... • 3m

Should Medial host offline/online events for startups? Advantages: 1. Strong networking opportunities for the community. 2. Enhanced brand value for Medial. 3. Lower customer acquisition cost (CAC) and an additional revenue stream for Medial. Wh

See More
2 replies10 likes
1
Image Description
Image Description

SiA

Let's build a commun... • 2m

I was recently eating this chocolate fudge ... and It is worth 500rs. I think they have a really Great margin on this product. If anyone knows about the unit economics or margins of such products please msg me ?

21 replies15 likes
Image Description
Image Description

FED KIIT

Federation of entrep... • 9m

Which metric is most commonly used by startups to measure product-market fit? A) Customer Acquisition Cost (CAC) B) Net Promoter Score (NPS) C) Customer Lifetime Value (CLV) D) Monthly Recurring Revenue (MRR)

2 replies3 likes
3

Download the medial app to read full posts, comements and news.