PRODUCT ADVISORY COUNCIL
Separate unit economics and runway
The method
Separate unit economics and runway
Customer contribution, acquisition payback, and cash runway are different questions.
When to use it
- Increasing acquisition, reducing prices, or expanding after fundraising.
Ask yourself
- Revenue is growing fast. Can we keep spending?
Put it into action
- Model each separately, including fixed costs and a conservative retention case. Ask how long operations last without new financing.
Keep these limits in mind
- Do not assume infinite retention or future automation that removes all costs. Profitable customers do not guarantee cash safety.