That whole unit economics thing, explained with tacos
Original: Unit Economics
Summary
Bret Waters offers an easy-to-follow primer using tacos, consultants, and Facebook as examples.
Who This Is For
Founders
Business Analysts
Product Managers
Key Takeaways
- Learn to identify your business's 'one unit' - whether it's tacos sold, billable hours, or subscriber-months
- Calculate the true cost of making each unit by separating variable costs from fixed overhead costs
- Understand that you need to sell enough units to cover fixed costs before becoming profitable
- Apply the CAC < LTV principle - customer acquisition cost must be less than lifetime value
- Recognize that poor unit economics get worse with scale, not better
Tools & Technologies
DoorDash Basic spreadsheet calculations
Topics Covered
basics finance entrepreneurship unit-economics
Ready to dive deeper?
Read Full Article on bretwaters.medium.com
