Unit Economics for a Startup - Part 1

Tushar Vashisht, CEO and Co-founder of HealthifyMe, talks about simple concepts and calculations in Unit Economics which can help Startups measure how much money they make from one unit of a product or service. In this video, he explains the 2 components of Unit Economics- the Lifetime Value (LTV or CLV). Lifetime Value is the profit a business makes from one customer over his/her lifetime. Customer Acquisition Cost is the cost incurred to acquire that particular customer. He discusses how to calculate the ratio between CAC and LTV. A higher LTV as compared to the CAC is what helped his company become scalable and elevate its profits from 30-40% to a whopping 70-80%.

About Wadhwani Entrepreneur:

# Wadhwani NEN: Empowers students with knowledge and skills through Courses and Startup Labs to create high-potential startups
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About Wadhwani Foundation:
Wadhwani Foundation was founded in 2000 by Dr. Romesh Wadhwani, with the primary mission of accelerating #job creation in India and other emerging economies through large-scale initiatives in entrepreneurship, small business growth, #innovation, and #skilling. The Wadhwani Foundation operates in 20 countries, including India, South East Asia (Indonesia, Malaysia, the Philippines), East Africa (Kenya, Uganda, Rwanda), Southern Africa (South Africa, Botswana, Namibia), West Africa (Nigeria, Ghana), Egypt, and Latin America (Mexico, Brazil, Peru, Chile). The Wadhwani Foundation works in partnership with governments, foundations, corporations, and educational institutes.

 
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[kumarprabhakaran]

Unit economics well explained. Probability of getting LTV right in the initial stages would be hard but as the business mature, the LTV should be fairly accurate.

[anshikapandey]

You explained it well! Though I don't know why people don't watch such things! 😛

[syedali-portfolio]

Hey for LTV, no of years a customer would return is not mentioned ? Isnt it necessary ? Pls clarify.

Thanks

[M-iCoN]

Is the goal is to increase LTV and decrease CAC?
If yes then why you gave four ways to increase CAC?

[adisin]

accent is confused and irritating but good idea and content. voice over would be good. thanks