Money, pricing & model
Unit economics & modeling
Know what a customer costs and earns.
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What are unit economics and why do they matter?
Unit economics is the profit or loss on a single customer or unit, strip away the noise and ask 'do I make money on one customer?' If the answer is...
How do I build a simple financial model or revenue projection?
Build bottom-up from real drivers, leads, conversion rate, price, churn, not top-down from 'we'll grab 1% of a huge market.' A useful early model f...
What is contribution margin and why do people say it matters more than gross margin for a startup?
Gross margin is revenue minus the direct cost of delivering your product, while contribution margin also strips out the variable costs to serve and...
At what point in my journey should I actually start caring about unit economics, versus just focusing on getting users?
Before product-market fit, obsessing over unit economics is premature because you're still changing the product, the price, and the customer. But y...
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