Nate TilleyCo-Founder, ROAS · Direct Response Expert

How To Know If Your Business REALLY Is Profitable? #shorts

Name: How To Know If Your Business REALLY Is Profitable? #shorts
Uploaded: 2022-09-06T08:18:09+00:00
Duration: 43 s
Channel: Nate Tilley
Description: Short YouTube video (Nate Tilley) explaining how to tell if a business is truly profitable by examining unit economics and e-commerce metrics to…

6 Sept 2022 · 1 min

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0:43

Short YouTube video (Nate Tilley) explaining how to tell if a business is truly profitable by examining unit economics and e-commerce metrics to determine product-market fit. Advises testing whether you can 'put $1 in and get $3, $5, $10, $20, $200 back' using a hypothesis-driven approach: form a hypothesis, buy data, run pragmatic analyses of acquisition metrics and backend operating cash drag, and inspect primary and secondary e-commerce metrics to validate scale.

Chapters

The metrics that you're looking for are called unit economics, and it's basically all the different units of economics that add up in your customer acquisition. Also, on the back end, operating cash drag in your business that's going to be able to identify whether or not you have product market fit. Do you have something that you can put $1 in and $3, $5, 10, 20, $200 comes back out of the machine? And the way that you do that is by forming a hypothesis, buying the data, and then being very pragmatic with the way that you look at those numbers to see if so what? Realistically, when you're looking at E Commerce, there are a bunch of metrics and secondary metrics to look at to find out whether or not you have something that's got legs and it's going to scale, I. E. You have product market fit.