Unit Economics: Financial analysis at micro level

February 15, 2024

Unit Economics refers to the direct revenues and costs associated with the production and sale of a single unit of a product or service and provides deep insights into profitability at the individual transaction level. These metrics are crucial for startups and corporates to assess the financial sustainability of their business model by analysing the long-term profitability of each item sold or service provided. Optimising unit economics is central to scaling business activities as it enables companies to develop efficient growth strategies based on solid financial foundations.