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catalystcohort 7 years, 9 months ago.
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Every successful business owner has clearly defined their unit economics – they have the numbers down pat and can tell you what they mean.
What is the value of a single sale to your enterprise? How close does each sale bring you to profitability? How much do you make from a particular line of business or a product category? What is the economic value of a single business unit. What does breakeven look like? How much does it cost you to acquire a customer. What is the optimum level of production in your business? How can I forecast sales? And how much cash will I need to succeed?
All of these critically important questions are dependent upon you knowing your Unit Economics!
