The "Unit Economics" Reality Check (The Math Template)
Most businesses fail not because of a bad product, but because they spent $10 to make $9. This template forces you to see the "hidden" costs.
Line ItemDescriptionExample (Apparel/Invention)Retail PriceWhat the customer pays.$50.00COGSMaterials, manufacturing, and labor.-$15.00Customer Acquisition (CAC)What you spend on ads/marketing to get one sale.-$10.00Shipping & FulfillmentPackaging, postage, and warehouse labor.-$8.00Platform FeesShopify, Etsy, or Credit Card processing (approx. 3%).-$1.50NET PROFITWhat actually goes into your bank account.$15.50
The Entrepreneur's Lesson: If your Net Profit is too low, you aren't running a business; you’re running a hobby that costs you money.