mysterious guyย โขย 4m
CAC vs LTV โ The Unit Economics Every Founder Must Know Youโre getting users. Youโre spending on ads. But is your startup actually making money per customer? If your CAC is higher than your LTV, youโre not building a business โ youโre burning cash. Breakdown: 1๏ธโฃ CAC (Customer Acquisition Cost) = How much you spend to acquire one customer. Includes: ads, sales team costs, tools, etc. 2๏ธโฃ LTV (Lifetime Value) = How much revenue a customer brings over their entire relationship with your product. 3๏ธโฃ The Golden Rule: ๐๐ง๐ฉ / ๐๐๐ ๐๐ต๐ผ๐๐น๐ฑ ๐ฏ๐ฒ > ๐ฏ. If itโs not, youโre paying too much or not retaining well. Example: CAC = โน1,000 LTV = โน2,000 โ โ (Unsustainable) LTV = โน4,000 โ โ (Healthy growth) Why this matters: You can grow fast and still fail if you donโt get this ratio right. Growth without margin = doom in disguise. Quick Tip: Donโt just track CAC once. Ad costs change. Behaviors change. Monitor it monthly. ๐๐ง๐ฉ ๐๐ฒ๐น๐น๐ ๐๐ผ๐ ๐๐ฎ๐น๐๐ฒ. ๐๐๐ ๐๐ฒ๐น๐น๐ ๐๐ผ๐ ๐ฐ๐ผ๐๐. ๐ ๐ฎ๐ฟ๐ด๐ถ๐ป ๐ถ๐ ๐บ๐ฒ๐ฎ๐๐๐ฟ๐ฒ๐ฑ ๐ถ๐ป ๐๐ต๐ฒ ๐ด๐ฎ๐ฝ.
I am > I was .ย โขย 17d
Day 13 of my 30-day Business & Entrepreneurship series . Building and testing your product is one thing โ but knowing if your business is healthy is another. Thatโs where metrics like CAC, LTV, Churn, and Retention come in. ๐ Hereโs the breakdown
See MoreStartups/VC/techย โขย 3m
While reading about the key metrics used to measure a startupโs growth, I came across one ratio that VCs often use to evaluate performance: ๐๐ง๐ฉ:๐๐๐ Before diving into the ratio, letโs quickly understand the two components: ๐๐ง๐ฉ (๐๐๐๐๐ผ๏ฟฝ
See MoreFounder startupsunio...ย โขย 4m
โ Must for Business Students ๐ฅ10 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
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Mastering Unit Economics Unit economics isnโt just a metricโitโs your startupโs financial DNA. It reveals whether each customer adds value or drains cash. Hereโs how to build your unit economics from scratch: 1. Define Your Economic Unit What drives
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Medialย โขย 10m
STARTUP TERMS TO KNOW - Day 1 1.PIVOT - A significant change in a startup's business model or strategy. 2.BOOTSTRAPPING - Funding a startup using personal savings or internal revenue without external help. 3.UNICORN - A privately held startup valu
See MoreDirector & CEO @ Exc...ย โขย 3m
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 MoreHey I am on Medialย โขย 4m
7 Essential Metrics Every Startup Should Track 1. Customer Acquisition Cost (CAC) https://www.investopedia.com/terms/c/customer-acquisition-cost.asp 2. Lifetime Value (LTV) https://www.investopedia.com/terms/c/customer-lifetime-value-clv.asp 3. Bu
See MoreFounder startupsunio...ย โขย 4m
๐ฅ10 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 MoreIT enthusiastic | Fu...ย โขย 2m
Some glimpse of business full form ? GTM:- go to market LTV:- lifetime value MVP :- Minimum viable product GT:- General Trade SP:- selling price ROI:- return on investment ROAS:- Return on advertising spend DAU:- Daily Active user MAU:- Monthly A
See MoreDirector & CEO @ Exc...ย โขย 4m
Decoding Unit Economics for Early-Stage Startups Unit economics is your startupโs compass. It tells you if scaling will make you richโor broke. Hereโs how to decode it, step by step: 1. Define a Unit: This could be a customer, order, or subscriptio
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