Chapter 1 –
Overview of Unit Economics
Unit Economics Gives You The Unfiltered Reality If Your Business Is Intrinsically Profitable
In this FREE chapter download, we get introduced to the importance of unit economics and the simple understanding of revenue minus variable costs. There are many ways to slice and dice your business (by customer, product line, geography, etc.) and all of those are acceptable methods of analysis.
The point of this chapter is to familiarize you with the power that you achieve as a business leader when you grasp the levers that drive your profitability. We end the chapter with a short exercise to have you begin assessing your own unit model.
This chapter will provide perspectives on:
- Simple unit economic model calculation
- Why unit economics are an important area for investor evaluation
- Why you cannot scale an unprofitable business
Out of this chapter, I want you to be thinking about:
- What is your “unit” in the business that will give you the most insight?
- Are you set up as a business to understand your unit economics?
- How you might begin to use unit economics to answer some important business questions.
About Stride:
Stride is an outsourced bookkeeping and accounting services firm founded by entrepreneurs to support high growth professional services firms. Our clients include marketing agencies, design firms, consulting firms, and other tech-enabled service providers ranging from $1 million to $10 million in revenue.
We’re committed to helping business owners with a thirst for continuous improvement achieve their highest and best use, whatever that may be.
As entrepreneurs, we know how important trust and confidence is in your back office. Why? So you can focus on achieving your highest and best us. The opportunity for business owners is to work on their business and not in their business. But if the back-office processes and systems aren’t delivering the information necessary to make better strategic decisions, owners find themselves drawn back into the fray. At Stride, all of our energy is around team, process, and technology designed to improve cash flow and profit while allowing business owners to chart their future with confidence.
Download Your FREE Chapter Today
