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Become great understanding and leveraging your unit economics

Unit economics is a simple yet powerful tool that attempts to simplify all this complexity by measuring the profitability on a per-unit basis, allowing you to understand better the health, success, and long-term sustainability of your business. You will learn to:

  • Clearly explain what unit economics is, how it is calculated within the context of your business, and the purpose it holds within the broader growth strategy process.
  • Understand the interconnectivity of how pricing, margin, future purchase behavior, and invested capital affect each other when assessing performance and strategic decision making
  • Develop actionable questions to ask and steps to take towards understanding, measuring, and analyzing the health of your business.

Course length: 2h 00min

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Jeffrey Bantam

Head of Finance @ PetFriendly

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Introduction video

This course is essential for you if…

  • You want to understand the WHY behind the WHAT regarding strategic decision-making, capital allocation, and operational efficiency.
  • You want to TAKE CHARGE in meetings that involve finance executives or outside investors and speak in the strategic language they live and breathe.
  • You simply want to level up your understanding of 1) how a company’s finances bind all growth departments together, 2) how strategic decisions can impact a company’s ability to grow and make money, and 3) how to make efficient and profitable growth decisions when allocating capital across channels

After taking this course you will…

  • Clearly explain what unit economics is, how it is calculated within the context of your business, and the purpose it holds within the broader growth strategy process.
  • Understand the interconnectivity of how pricing, margin, future purchase behavior, and invested capital affect each other when assessing performance and strategic decision making
  • Develop actionable questions to ask and steps to take towards understanding, measuring, and analyzing the health of your business.

Your course curriculum

Unit economics for ecommerce

1
Introduction to unit economics


Unit economics is a simple, yet powerful, tool that attempts to simplify all this complexity by measuring profitability on a per-unit basis, allowing you to better understand the health, success and long-term sustainability of your business.




2
How is the unit economic value calculated?


Unit economics is a simple, yet powerful, tool that attempts to simplify all this complexity by measuring profitability on a per-unit basis, allowing you to better understand the health, success and long-term sustainability of your business.




3
Introducing primary component #1: pricing


Unit economics is a simple, yet powerful, tool that attempts to simplify all this complexity by measuring profitability on a per-unit basis, allowing you to better understand the health, success and long-term sustainability of your business.




4
Introducing primary component #2: margin


Unit economics is a simple, yet powerful, tool that attempts to simplify all this complexity by measuring profitability on a per-unit basis, allowing you to better understand the health, success and long-term sustainability of your business.




5
Introducing primary component #3: future purchase behavior


Unit economics is a simple, yet powerful, tool that attempts to simplify all this complexity by measuring profitability on a per-unit basis, allowing you to better understand the health, success and long-term sustainability of your business.




6
Introducing primary component #4: invested capital


Unit economics is a simple, yet powerful, tool that attempts to simplify all this complexity by measuring profitability on a per-unit basis, allowing you to better understand the health, success and long-term sustainability of your business.




7
Improving primary component #1: pricing


Unit economics is a simple, yet powerful, tool that attempts to simplify all this complexity by measuring profitability on a per-unit basis, allowing you to better understand the health, success and long-term sustainability of your business.




8
Improving primary component #2: margin


Unit economics is a simple, yet powerful, tool that attempts to simplify all this complexity by measuring profitability on a per-unit basis, allowing you to better understand the health, success and long-term sustainability of your business.




9
Improving primary component #3: future purchase behavior


Unit economics is a simple, yet powerful, tool that attempts to simplify all this complexity by measuring profitability on a per-unit basis, allowing you to better understand the health, success and long-term sustainability of your business.




10
Improving primary component #4: invested capital


Unit economics is a simple, yet powerful, tool that attempts to simplify all this complexity by measuring profitability on a per-unit basis, allowing you to better understand the health, success and long-term sustainability of your business.




11
Example #1: rising CAC (customer acquisition cost)


Unit economics is a simple, yet powerful, tool that attempts to simplify all this complexity by measuring profitability on a per-unit basis, allowing you to better understand the health, success and long-term sustainability of your business.




12
Example #2: not enough LTV (customer lifetime value)


Unit economics is a simple, yet powerful, tool that attempts to simplify all this complexity by measuring profitability on a per-unit basis, allowing you to better understand the health, success and long-term sustainability of your business.




13
Closing


Unit economics is a simple, yet powerful, tool that attempts to simplify all this complexity by measuring profitability on a per-unit basis, allowing you to better understand the health, success and long-term sustainability of your business.




Jeffrey Bantam

Head of Finance @ PetFriendly

Hello! My name is Jeffrey Bantam, currently Head of Finance and all things data at PetFriendly. PetFriendly is a monthly subscription box service focused on providing pet wellness products to dog and cat parents.

Previous to PetFriendly, I led growth and go-to-market strategy for the finance team at Flywheel, a SaaS company in the managed hosting space. Before Flywheel, I spent my first five years post-grad in Investment Banking and Growth Equity, where I handled sourcing and diligence for high-growth companies (from <$10M to >$1B) across multiple industry verticals, ranging from eCommerce and Consumer to SMB and Enterprise SaaS, to lending and broader FinTech.

I believe my diverse background of experiences and perspectives makes my finance knowledge a superpower, enabling me to help better founders and operators bridge the gap between weekly operational planning and quarterly/annual/multi-year forecasting. I combine experiences of sitting in board rooms of multi-billion dollar public companies with an unhealthy level of preference towards profitability and operational efficiency so that no matter if you’ve raised capital or are bootstrapped, whether you are big or small, whether you are high growth or steady-eddy, I can best position you for success in achieving your specific objectives.

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