A Guide to Unit Economics for Startups (LTV, CAC, and Payback)
Generate a detailed guide for founders on how to calculate and interpret essential unit economics.
Prompt:
570 characters
Generate a full, in-depth guide on unit economics for startup founders. The guide must simplify financial concepts. It should include: 1. A detailed, step-by-step guide on how to calculate Customer Lifetime Value (LTV). 2. A detailed, step-by-step guide on how to calculate Customer Acquisition Cost (CAC). 3. An explanation of the LTV to CAC ratio and what investors look for. 4. A guide to calculating the Payback Period. 5. A section on how to use these metrics to make strategic decisions. Please include a strong disclaimer to consult with a financial professional.