You can sell a $5 bills for $2 all day long and make #billions of dollars doing that in #revenue…but are you going to make any profit?
Forget about profits, do you think you run a #sustainablebusiness? How can you run a #successfulbusiness without knowing and tracking your metrics?
But countless businesses are getting started or running blindfolded…some are caught-up in the #unicorn wind, some in the passion wind, and most unfortunately are in the ignorance wind. #Uniteconomics simply lays out the difference between average cost to acquire a customer and potential lifetime revenue from that customer.
Give your business some love and start your 2020 by figuring out your own unit economics, find out your #costofacquisition and #lifetimevalue of your customer. Calculate your #CAC ratio and find ways to keep it above at-least 1.5x, preferably around 3x Find out your CAC from each of your marketing channels and optimize or weed out the poor ones.
The last thing you want to do is take someones money, be it from an outside investor or your aunt, and run your business without knowing your numbers or at a CAC ratio 1. Use the next few days to get your unit economics right,find our your actual numbers, set your 2020 goals and go for it with MATH on your side. #growth #scale