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Unit Economics for your Startup Financial Projections 

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Grab my free pitch deck and financial model templates at rocketproforma.com/resources
Free Workshop: rebrand.ly/WorkshopRocketProFormaYT
ONLINE COURSE Financials Made Easy: get.RocketProForma.com/course
#startups #financials #impressinvestors #pitchdecks
There are two ways to calculate Unit Economics for your startup: 1. Per Unit and 2. Per Customer. This video walks you through both including simple formulas, breakeven calculations, and unit economics examples from WeWork and Uber. There's also a section on calculating customer lifetime value (LTV) and customer acquisition cost (CAC).
0:00 - Intro to Unit Economics
0:10 - Two Main Types
0:48 - Per-Unit and Breakeven for Lemonade
2:33 - Unit Economics for WeWork and Uber
4:45 - Two Paths to World Domination
6:20 - Per-Customer Unit Economics
8:20 - Lifetime Value (LTV) for a Coffee Shop
9:28 - Lifetime Value (LTV) for a Subscription Business Like Netflix
11:43 - Calculating Monthly Churn
12:07 - Calculating Global CAC (Cost to Acquire a Customer)
13:01 - Calculating Campaign-Specific CAC (Cost to Acquire a Customer)
14:37 - Find Your CAC for $70
Recommended Videos:
- Financial Projections Template for Startups - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-mJFMT4ncOPs.html
- My Best Pitch Deck Financials Slide - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-q93-mD3vVGE.html
- Best Slide to End Your Startup Pitch Deck for Investors [2020 Milestones Slide] - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-39BWvbKJ9wM.html
- Pitch Deck Playbook - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-DHf6Z_nJsCM.html
- Pitch Book Playbook, Part 2 - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-U-T-J1Q3sRo.html
Want to quickly create your startup financial projections and confidently present to investors?
Check out RocketProForma.com

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3 ноя 2020

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Комментарии : 40   
@zhandosyembergenov1990
@zhandosyembergenov1990 Год назад
Thanks Mike, absolutely loved the content, simple and easy to follow with great real life examples. Kudos
@bikocodes9834
@bikocodes9834 10 месяцев назад
Thank you Mike. You have saved a start-up here. Thanks once more.
@rnsjnr
@rnsjnr 2 года назад
Thanks Mike; really appreciate how you show the relationships between the different metrics. So useful.
@sanuallahkhan8891
@sanuallahkhan8891 3 месяца назад
Great teacher and explainer
@michelriecken2117
@michelriecken2117 3 года назад
Uh..... So Good! This information will help us skyrocket our startup! Thanks so much Mike!
@MikeLingle
@MikeLingle 3 года назад
You bet!
@Aritra-no6of
@Aritra-no6of 4 месяца назад
Excellent video🎉.Finally I have found an easy to understand video on unit economics.
@MikeLingle
@MikeLingle 4 месяца назад
Glad you liked it!!
@vasudevddn98
@vasudevddn98 3 года назад
Thanks, Mike Sir for this explanation.
@william_chidube
@william_chidube 3 года назад
Great, great work Mike. Thank you.
@gehnasharma5841
@gehnasharma5841 2 года назад
such a helpful video thanks a lot!
@sarahfavorites
@sarahfavorites 3 года назад
Great content, thank you
@jvsaglesbebe
@jvsaglesbebe 3 года назад
Great content here!
@edoodozor5732
@edoodozor5732 2 года назад
Thank you, Mike!
@hessam97
@hessam97 Год назад
A great video. Thanks 🙏🏻
@samfrmd
@samfrmd 6 месяцев назад
Thanks Mike. I've learned a lot :)
@MikeLingle
@MikeLingle 4 месяца назад
Glad to hear it!
@AndresLealco
@AndresLealco 3 года назад
Mike! great content! thank you!
@MikeLingle
@MikeLingle 3 года назад
Glad you liked it!
@akshatsingh6154
@akshatsingh6154 3 года назад
This is a great video. Thanks for it.
@MikeLingle
@MikeLingle 3 года назад
Glad you liked it! Please feel free to suggest topics for me to cover.
@ratanvaghela7666
@ratanvaghela7666 5 месяцев назад
Thanks mike..giving us free knowledge ❤
@MikeLingle
@MikeLingle 4 месяца назад
More to come!
@v.yashwanth3683
@v.yashwanth3683 Год назад
thank you
@alexandercrump2298
@alexandercrump2298 2 года назад
You’re a legend mike!
@MikeLingle
@MikeLingle 2 года назад
Haha thank you! Glad my videos are helping.
@psumoaji
@psumoaji 2 года назад
Thanks Mike :)
@alexypolivany7148
@alexypolivany7148 2 года назад
Customer LT can be measured by the formula (1/Churn-rate) you can measure churn rate even if a cohort is still has customers. It can be predictive churn rate.
@MikeLingle
@MikeLingle 2 года назад
Yes I prefer to think of churn in terms of # months people are likely to stick around. 24 months is often a good starting guess. You can then divide 1 by # of months to get the implied monthly churn rate. 1/24 months = 4.2% monthly churn, for example.
@LatinGlamwithme
@LatinGlamwithme Год назад
Best video ever thank you !!!
@MikeLingle
@MikeLingle Год назад
Wow thanks!
@manuelnacer2258
@manuelnacer2258 2 года назад
Great video!
@MikeLingle
@MikeLingle 2 года назад
Glad you enjoyed it
@swatidoesthings
@swatidoesthings 3 года назад
This is a great video.
@MikeLingle
@MikeLingle 3 года назад
Glad you enjoyed it! Glad you liked it! Please feel free to suggest topics for me to cover.
@leoted
@leoted 3 года назад
7:21 LTV = -0.1 x CAV is this a typo? Is this, "LTV = -1.1 x CAV", correct ?
@MikeLingle
@MikeLingle 3 года назад
Yes good catch! I think it's actually LTV = 0.9x CAC. I will update it in my slides. Thank you!
@yuanyuanwu8005
@yuanyuanwu8005 3 года назад
Thanks Mike for the clear explanation! One question is: for method 2 coffee example, we can use method 1's contribution margin to explain it as well right? In fact, is method 2 more applicable to product whose repeated consumption does not incur substantial costs, such as Netflix? Otherwise, it seems method 1 is always useful.
@MikeLingle
@MikeLingle 3 года назад
Yes you can use method 1's contribution margin to explain the coffee example. No matter which method, you always need to subtract out the variable costs (usually cost of goods sold) to properly calculate the lifetime value.
@yuanyuanwu8005
@yuanyuanwu8005 3 года назад
@@MikeLingle Thanks Mike for your reply!