Unit Economics 101: LTV:CAC from Day One
Why cashflow-first businesses compound, and how to prove unit economics before scaling.
Unit economics are the most honest signal of whether a business will work. Most early-stage ventures defer the calculation; the discipline that separates compounders from burners is computing LTV and CAC from contract one and acting on the ratio every month thereafter. The full article walks through the formulas, the common mistakes, and the threshold values we use as Avante.
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