What is this for?
This business design tool will help you figure out whether your product or service will actually be profitable once marketing and other efforts are taken into consideration.
Use it to work out how much it costs to produce, market, and acquire a customer per individual unit of your proposed product or service.
It will force you to make some concrete assumptions about numbers that you might not know yet and help you align as a team and evaluate the basis of your business model. Keep adjusting the numbers as you (in)validate your assumptions.
Individually review the unit economics calculator and write down in words what figures you need to know to calculate a guesstimate for your business model.
As a team, compare your findings and agree on a formula (in words).
Step 3Divide tasks and try to turn words into numbers. If you don’t have direct estimates as to the right numbers, use a benchmark or make an educated guess, but make sure the underlying assumptions are explicit.
Step 4Calculate your guesstimate and have a group discussion about the impact of the results.
Unit economics calculator
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