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Karnivesh

Simplifying finance....ย โ€ขย 3d

Iโ€™ve noticed that many startups celebrate users, orders, and revenue before asking the hardest question: does each unit actually make money? Thatโ€™s what unit economics reveals. Strip away the hype, and it comes down to whether a business earns more from a customer than it spends to acquire and serve them. A quick mental checklist I always come back to: โ€ข ๐Ÿ“Š Is LTV at least 3ร— CAC? โ€ข โฑ๏ธ Is the payback period reasonable? โ€ข ๐Ÿ’ธ Are margins improving as scale grows? โ€ข ๐Ÿ” Is growth driven by retention or discounts? Strong unit economics quietly compound. Weak ones hide behind growth until cash runs out. ๐Ÿ“Œ Takeaway: Scale amplifies truth. If the unit works, growth helps. If it doesnโ€™t, growth hurts. ๐Ÿ‘‰ For a deeper breakdown with real startup examples, refer to the attached link.

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