Every startup or business ultimately aims to turn a profit by providing a product or service with a higher value than the costs to deliver it. Whether you are planning to start a new venture or currently running one, it's important to understand the unit economics of your business.
Unit economics is defined as the direct revenues and costs associated with a particular business model expressed on a per unit basis.
Understanding the unit economics of your business provide a way to measure its profitability. So let's start by identify the unit for your business. If you are selling a product like a glass of lemonade 🍋, that would be the unit. For those providing a service, the unit would be the customer or client.