A few months ago I had lunch with my cousin who runs a property management company. He started telling me that he was having a hard time growing his business. So I asked him a few questions. I realized his challenge wasn’t in sales, it was that he didn’t understand his market or the “unit economics” of a customer. In the technology world – my world – we consider this the holly grail of measurement: How much revenue do you make from a new customer, and what did it cost to get that customer?
So I walked him through a simple exercise that I’ve done with hundreds of entrepreneurs. Here’s how it works… first question: