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

Back

Vivek Joshi

Director & CEO @ Exc... • 19h

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

0 replies3 likes

More like this

Recommendations from Medial

Vivek Joshi

Director & CEO @ Exc... • 2d

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 More
0 replies10 likes
7
Image Description
Image Description

Ronak Patel

Here you go! • 9m

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

Amanat Prakash

Building xces • 1m

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

See More
0 replies1 like
Image Description
Image Description

Swapnil gupta

Founder startupsunio... • 1d

✅ 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
Image Description
Image Description

Dipesh Pimpale

Data 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 More
3 replies19 likes
14

Swapnil gupta

Founder startupsunio... • 10d

🥇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
Image Description

SHIV DIXIT

CHAIRMAN - BITEX IND... • 3m

💰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 More
14 replies28 likes
17
Image Description
Image Description

Arcane

Hey, I'm on Medial • 6m

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

See More
3 replies7 likes
5
Image Description

Nikhil Raj Singh

Serial Entrepreneur ... • 2m

Whenever any Investor evaluates a startup then they focus on these criteria.. 1. A team with relevant experience is super important- their past working experience, educational qualifications, etc. 2. Next is the market opportunity- how big is your

See More
1 replies63 likes
122

Harshavardhan

 • 

YouTube • 1y

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

See More
0 replies14 likes
12

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