Build and pressure-test your unit economics: CAC, LTV, payback period, contribution margin, and the LTV/CAC ratio, with honest assumptions and the diagnosis of whether the business model actually works.
## CONTEXT Unit economics answer the question that determines whether a startup is a business or a money-burning machine: when you sell one more unit, do you make money or lose it, and how long until acquisition cost is recovered? Founders routinely flatter their unit economics with optimistic assumptions,…
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