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Business
Unit Economics
The direct revenues and costs associated with a single unit of sale (one customer, one order, one subscription).
Strong unit economics mean the business makes money at the smallest level. If unit economics are negative, the company will lose money no matter how big it grows. Investors always ask to see unit economics first.
It's looking at the profit and loss of just one single customer instead of the whole company.
Real world: A meal delivery company calculates that each new customer brings £45 revenue but costs £32 in food, delivery, and marketing. The unit economics are positive £13 per customer — meaning the business model can work at scale.
💡 If the numbers don't work for one customer, they won't work for a million customers.