What kind of business engine is this?
Before any numbers, decide what you're actually modeling. Every venture runs on a repeatable engine — one store, one subscription, one asset, one transaction — and the whole analysis is built by understanding that single unit and then multiplying it. Pick the wrong unit and every number downstream answers the wrong question.
- 01
A handful of unit types
A business is one of a small number of engine types. Naming yours tells you which economics to model and which analogs to look for.
- 02
One unit, not the business
Resist modeling “the company.” Model the one store, the one account, the one device — then multiply.
- 03
The unit sets the comparables
Once you know the unit, you know which real companies already run it — and whose numbers you can borrow.
You can state your venture's economic unit in one sentence — and defend why it's the right one.