Director & CEO @ Exc... • 1m
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 revenue? A customer, order, or subscription? Be clear—it’s the foundation. 2. Calculate CAC (Customer Acquisition Cost) Total sales & marketing spend ÷ number of new customers acquired in a given period. 3. Estimate Gross Margin per Unit Revenue per unit – variable costs (e.g., hosting, delivery, support). 4. Project Customer Lifetime Value (LTV) LTV = ARPU × Gross Margin % × Average Customer Lifespan. 5. Find Contribution Margin Contribution margin = Revenue – Variable Costs (per unit). This tells you if each sale helps cover fixed costs. 6. Calculate CAC Payback Period CAC ÷ monthly contribution margin per customer = months to break even. 7. Validate the LTV:CAC Ratio A healthy startup aims for LTV:CAC > 3 and payback in <12 months
Director & CEO @ Exc... • 1m
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
See MoreDirector & CEO @ Exc... • 28d
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 MoreFounder startupsunio... • 1m
✅ 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 MoreData Analytics | 𝐀�... • 1y
Imporant metric for Start-ups - Break Even Units Suppose we are a shoe brand and we want to calculate our units to be sold for break even (No profit No Loss) Fixed Cost - 4,00,000 Selling Price per Unit - 1200 Variable Cost per Unit - 800 Contributi
See MoreFounder 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 MoreCHAIRMAN - BITEX IND... • 5m
💰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 #
See MoreDownload the medial app to read full posts, comements and news.