Unit economics. Data Driven Decisions for Business and Startups
How to make business less risky and more predictable? How to calculate in advance whether a startup will be a successful investment of effort and time? This book is dedicated to unit economics — a method that has proven its effectiveness in practice. With illustrations, real-world examples, and clear explanations, it's an essential resource for anyone building or managing a business.
What you'll learn
- What unit economics is and how it evolved from David Skok's original framework
- How to build business models for simple monetization, mixed models, and subscriptions
- How to find growth points and when to pivot using data, not intuition
- Goldratt's Theory of Constraints applied to startups and focus strategy
- Cohort analysis — formation, importance, and the role of time
- How to build a startup financial model and evaluate investment potential
- 30+ metrics explained: CAC, LTV, COGS, MRR, EBITDA, NPV, IRR, and more
Who is this book for
Foreword by Ash Maurya
Running a business without metrics is like flying a plane without instruments. Neither is a good idea when visibility is low.
Enter Unit Economics. In this book, Daniil shows you how to cut through this facade of vanity metrics and instead measure the output of a working business model using a handful of metrics that measure a product's unit economics.
Unit Economics is a practical handbook for anyone who wants to make better data-driven product and growth decisions. Not more numbers, but actionable metrics.
Ash Maurya, March 2024, Austin, TX