Unit Economics

Paying yourself zero distorts your business metrics and invites burnout. This guide helps founders calculate a sustainable salary that balances personal survival with company growth.

CAC measures the cost to acquire a single customer. This article breaks down the formula, the critical LTV ratio, and why understanding this metric prevents startup failure.

Revenue is vanity. Unit economics is sanity. This article explains how to calculate the true profitability of a single sale to avoid the trap of scaling losses.

COGS measures the direct cost of producing what you sell. This article breaks down the calculation, compares it to operating expenses, and explains its impact on unit economics.

Gross margin measures the percentage of revenue retained after direct costs. This article breaks down the calculation, industry benchmarks, and why it dictates your startup’s ability to grow.