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Tag: opportunity analysis

Unit Economics: Cost Types and the Stages of Business Growth

July 28, 2025 Matt Sparks

As I’ve written before, start-ups should use variable costs whenever possible, growth stage companies should shift to using fixed period…

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Posted in: Essays Filed under: business, entrepreneurship, finance, opportunity analysis, startups, Unit Economics

Unit Economics: Lifetime Value and Customer Acquisition Cost

Matt Sparks

Another common way to think of Unit Economics (i.e. instead of the method I’ve described in my prior posts) is to…

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Posted in: Essays Filed under: business, entrepreneurship, finance, opportunity analysis, startups, Unit Economics

Unit Economics Explained – Part 6: Summary

Matt Sparks

Unit Economics are the most important quantitative tool for opportunity analysis. Having even read this chapter, you’re in the company of an…

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Posted in: Essays Filed under: business, entrepreneurship, finance, opportunity analysis, startups, Unit Economics

Unit Economics Explained – Part 5: Common Mistakes

Matt Sparks

Even though basic Unit Economics and the four formulas are simple, novices often make mistakes when calculating Unit Economics. Below…

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Posted in: Essays Filed under: business, entrepreneurship, finance, opportunity analysis, startups, Unit Economics

Unit Economics Explained – Part 4: Advanced Unit Economics

Matt Sparks

The Unit Economics in some businesses can be quite complicated. Airlines and schools are good examples. Airlines must understand how many tickets…

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Posted in: Essays Filed under: business, entrepreneurship, finance, opportunity analysis, startups, Unit Economics

Unit Economics Explained – Part 3: The Formulas

Matt Sparks

Unit Economics are calculated using four separate formulas that build upon each other and use the various cost totals as…

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Posted in: Essays Filed under: business, entrepreneurship, finance, opportunity analysis, startups, Unit Economics

Unit Economics Explained – Part 2: Units and Costs

Matt Sparks

Units  When calculating Unit Economics, you must first decide what unit you will use as your base unit for the…

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Posted in: Essays Filed under: business, entrepreneurship, finance, opportunity analysis, startups, Unit Economics

Unit Economics Explained – Part 1: Why Unit Economics Matter

Matt Sparks

The single best tool for analyzing a potential entrepreneurial or investment opportunity is Unit Economics. Unit Economics answer three basic questions,…

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Posted in: Essays Filed under: business, entrepreneurship, finance, opportunity analysis, startups, Unit Economics

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