Startup Funding Espresso – Show the Business Model Unit Economics

Show the Business Model Unit Economics Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Early-stage companies pitching investors often have little revenue traction. In place of traction, show how the business model performs on the unit economic level. Calculate the cost of acquiring a customer and the expected lifetime value of that customer. Show the ratio between the two and make a note of it. Show how your business model is profitable at the unit economic level. This will resonate with investors who seek working business models. Discuss the variability of the costs and how the costs will scale with the business. Make a note of the gross margins and the profit margins at the early stage. Some investors judge the business based on the margins and the variability of costs. This allows the startup to ride the economic waves of good times as well as bad times. Show how the business is close to breakeven already. Note how few customers it will take to reach break-even. Show how the business is profitable at the very early stages. Show the business model in unit economic terms when pitching to an investor. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let's go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Investors check out: https://tencapital.group/investor-landing/ For Startups check out: https://tencapital.group/company-landing/ For eGuides check out: https://tencapital.group/education/ For upcoming Events, check out https://tencapital.group/events/ For Feedback please contact [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.