Model_PM @Model_PM_

We're building ModelCraft to help you prove viability. Test how your product's performance impacts company performance and investor returns. DM us to get added to the waitlist for early access

Model_PM @Model_PM_

4 days ago

We're building ModelCraft to help you prove viability. Test how your product's performance impacts company performance and investor returns. DM us to get added to the waitlist for early access

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The third leg which most people developing products start with is feasibility. -Does the tech exist, and if not can we build it? -Can we deliver the product to our customers? We usually focus on building, but without desirability and viability you'll never scale or maintain it

Model_PM @Model_PM_

4 days ago

The third leg which most people developing products start with is feasibility. -Does the tech exist, and if not can we build it? -Can we deliver the product to our customers? We usually focus on building, but without desirability and viability you'll never scale or maintain it

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Viability → Is it good for the business? -Profitable unit economics -Scalable business model -Fits company strategy Products that lose money at scale won’t survive. Products that don't fit into the broader company or investor strategy will never get the backing they need

Model_PM @Model_PM_

4 days ago

Viability → Is it good for the business? -Profitable unit economics -Scalable business model -Fits company strategy Products that lose money at scale won’t survive. Products that don't fit into the broader company or investor strategy will never get the backing they need

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Desirability → Do customers want it? -Does your product solve a real customer problem? -What's your clear value proposition -Evidence of demand (interviews, pilots, waitlists) If customers don’t care, you'll never achieve sustainable customer traction

Model_PM @Model_PM_

4 days ago

Desirability → Do customers want it? -Does your product solve a real customer problem? -What's your clear value proposition -Evidence of demand (interviews, pilots, waitlists) If customers don’t care, you'll never achieve sustainable customer traction

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Product Managers & Entrepreneurs often focus on if and how they can build a product. This misses two key pillars of product development which can save you a lot of time and money, desirability and viability

Keep an eye out for ModelCraft! The tool that helps product managers, founders, and finance pros build smarter models. Easily see how growth impacts your business and make better decisions. DM us to get early access and test it out!

Profit ≠ Cash. 💡 Your Income Statement shows profitability, but only the Cash Flow Statement reveals if you can actually pay the bills. Here’s a simple cheat sheet to spot the difference 👇

Bottom line: Growth is exciting, but scaling without positive unit economics is like driving faster with a leak in your gas tank. Nail your unit economics first — scale second. Follow @Model_PM_ for more finance clarity for PMs and founders.

Model_PM @Model_PM_

3 weeks ago

Bottom line: Growth is exciting, but scaling without positive unit economics is like driving faster with a leak in your gas tank. Nail your unit economics first — scale second. Follow @Model_PM_ for more finance clarity for PMs and founders.

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How to use it for a saas business: 1️⃣ Calculate contribution margin per product/service. 2️⃣ Compare to CAC — are you earning back your acquisition cost quickly? 3️⃣ Monitor payback period — the time it takes to recoup CAC.

Model_PM @Model_PM_

3 weeks ago

How to use it for a saas business: 1️⃣ Calculate contribution margin per product/service. 2️⃣ Compare to CAC — are you earning back your acquisition cost quickly? 3️⃣ Monitor payback period — the time it takes to recoup CAC.

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Example: 📦 You sell for $100 💸 Your variable costs = $70 ➡️ Contribution margin = $30 (30%) Sounds great right? Well if your customer acquisition cost (CAC) is $40… you have a problem.

Model_PM @Model_PM_

3 weeks ago

Example: 📦 You sell for $100 💸 Your variable costs = $70 ➡️ Contribution margin = $30 (30%) Sounds great right? Well if your customer acquisition cost (CAC) is $40… you have a problem.

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Why it matters early: •It’s your true profitability indicator. •Guides your pricing strategy. •Prevents growth that burns cash. In the early stages, you need to prove you can make money at the unit level before pouring fuel on the fire.

Model_PM @Model_PM_

3 weeks ago

Why it matters early: •It’s your true profitability indicator. •Guides your pricing strategy. •Prevents growth that burns cash. In the early stages, you need to prove you can make money at the unit level before pouring fuel on the fire.

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Unit Economics are the profit and loss for one unit of your product or service. Think of it as: Unit Contribution Margin = Price per unit – Variable cost per unit If you’re losing money on each unit, selling more just makes the hole deeper.

Model_PM @Model_PM_

3 weeks ago

Unit Economics are the profit and loss for one unit of your product or service. Think of it as: Unit Contribution Margin = Price per unit – Variable cost per unit If you’re losing money on each unit, selling more just makes the hole deeper.

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When launching a product, it’s tempting to focus only on growth. 🚀 But if you ignore unit economics, you might scale yourself into failure. Let’s break down why unit economics can make—or break—your launch 👇

Bottom line: Opex keeps the lights on 💡 Capex builds the house 🏗 If you want more bite-sized finance tips for PMs and founders, follow @Model_PM_

Model_PM @Model_PM_

4 weeks ago

Bottom line: Opex keeps the lights on 💡 Capex builds the house 🏗 If you want more bite-sized finance tips for PMs and founders, follow @Model_PM_

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Why it matters: •Opex impacts your P&L this year. •Capex spreads the cost across future years. •Misclassifying them can distort margins, cash flow forecasts, and ROI calculations. It’s all about matching the costs to the period you expect to realize revenue.

Model_PM @Model_PM_

4 weeks ago

Why it matters: •Opex impacts your P&L this year. •Capex spreads the cost across future years. •Misclassifying them can distort margins, cash flow forecasts, and ROI calculations. It’s all about matching the costs to the period you expect to realize revenue.

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Capex (Capital Expenditures) 💸 Spending to acquire or improve long-term assets. Think: buying servers, building a new office, developing major infrastructure. 🗓 Costs are capitalized and expensed over time via depreciation/amortization.

Model_PM @Model_PM_

4 weeks ago

Capex (Capital Expenditures) 💸 Spending to acquire or improve long-term assets. Think: buying servers, building a new office, developing major infrastructure. 🗓 Costs are capitalized and expensed over time via depreciation/amortization.

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Opex (Operating Expenses) 💰 Day-to-day costs to run the business. Think: salaries, marketing, software subscriptions, office rent. 📊 Shows up fully on the P&L in the period it’s incurred.

Model_PM @Model_PM_

4 weeks ago

Opex (Operating Expenses) 💰 Day-to-day costs to run the business. Think: salaries, marketing, software subscriptions, office rent. 📊 Shows up fully on the P&L in the period it’s incurred.

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Product Managers often get tripped up with the difference between Opex and Capex. Let’s break it down 👇

💡 Finance doesn’t have to be complicated. But you need to understand how your company makes money, and what's left after expenses. Here’s a simple cheat sheet for understanding a Profit & Loss statement 📊 Save this for later. #FinanceTips #Startups #SaaS