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Vivek Joshi

Director & CEO @ Exc... • 4m

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.

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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

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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

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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.

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Ronak Patel

Here you go! • 1y

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

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Aditya

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Day 13 of my 30-day Business & Entrepreneurship series . Building and testing your product is one thing — but knowing if your business is healthy is another. That’s where metrics like CAC, LTV, Churn, and Retention come in. 📊 Here’s the breakdown

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Pivoting -When do the numbers tell you it's time to drastically re-evaluate your startup's core business model?" Financial Red Flags: Consistently Negative Unit Economics: Losing money on every sale with no clear path to profit? Your Customer Acquis

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7 Startup Metrics Investors Actually Care About: 1)CAC / LTV ratio 2)Monthly active users (MAU) 3)Retention rate (30/60/90 day) 4)Burn rate 5)Revenue growth (MoM/YoY) 6)Churn rate 7)Payback period

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Vivek Joshi

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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