financial-unit-economicslisted

# Financial Unit Economics ## Table of Contents - [Purpose](#purpose) - [When to Use](#when-to-use) - [What Is It?](#what-is-it) - [Workflow](#workflow) - [Common Patterns](#common-patterns) - [Guardrails](#guardrails) - [Quick Reference](#quick-reference) ## Purpose Financial Unit Economics analyzes the profitability of individual units (customers, products, transactions) to determine if a business model is viable and scalable. This skill guides you through calculating key metrics (CAC, LTV, contribution margin), interpreting ratios, conducting cohort analysis, and making data-driven decisions about pricing, marketing spend, and growth strategy. ## When to Use Use this skill when: - **Business model validation**: Determine if startup/new product can be profitable at scale - **Pricing decisions**: Set prices based on target margins and customer economics - **Marketing spend**: Assess ROI of acquisition channels, optimize CAC - **Growth strategy**: Decide when to scale (raise funding, increase spend) based on unit economics - **Product roadmap**: Prioritize features that improve retention or reduce churn (increase LTV) - **Investor pitch**: Demonstrate business model viability with CAC, LTV, payback metrics - **Channel optimization**: Compare profitability across customer segments or acquisition channels - **Subscription models**: Analyze recurring revenue, churn, cohort retention curves - **Marketplace economics**: Model take rate, supply/demand side economics, liquidit