Unit economics: Three definitions that reveal its essence
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The unit economics has a lot of definitions. I will cite only a few of them, which most clearly and accurately explain why it is needed.
The first one is basic. Unit economics defines the required number of scaling units whose contribution margin covers fixed costs with a given level of profit.
The second is about decisions. Unit economics connects business processes with finances and allows to manage managerial decisions from the point of view of economic feasibility assessment.
The third is about processes. Unit economics connects people performing business processes, business processes themselves and the financial result from their performance with the help of mathematics, which allows you to effectively manage processes in business.
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