#96 How to Understand the Unit Economics of a CPG Company with Graphite Financial

If you are in the Startup CPG Slack #finance channel, you’ll regularly see tons of questions about projections, cash flow, and unit economics, so I’m so excited today that we are joined by Paul Bianco, CEO and Founder of Graphite Financial. Born out of a VC fund, Graphite provides startup accounting, finance & tax services for high growth brands. For the past few months, Graphite has even been offering 1:1s with our community members for free to get specific advice for their business (keep an eye out in Slack for more opportunities). Today we’ll focus on the topic of unit economics for CPG companies.

Listen in as Paul shares about:

• Tips for calculating gross margin correctly
• Issues with commonly used terms like LTV (Life Time Value) and ROAS (Return on Ad Spend) and what metrics he recommends instead
• Using cohort analysis in LTV calculations
• How much data is enough data to create a meaningful analysis
• Best practices and tools for projections
• Tips on when and how to find the right finance service for your company
• And more!

This episode was sponsored by Graphite Financial. Go to graphitefinancial.com/cpg
This episode was sponsored by Shopify. Go to shopify.com/startupcpg
This episode was sponsored by Promomash + Crisp. Go to promomash.com/startupcpg
This episode was sponsored by Maven Agency. Go to strategymavenagency.com

Episode Links:

• Graphite Financial website
• Download a free financial model template, chart of accounts template, and more here
• Paul’s LinkedIn
• Brands mentioned: Plated, Brightland, Funky Mello

Shopify Links:

• Start a free trial and enjoy 2 months of Shopify for $1/month

Promomash/Crisp Links:

• Try Promomash + Crisp free for 30 days here
• Webinar recording: Promomash + Crisp Present: The Next Big Thing in WFM Demo Analytics
• Webinar recording: Distributor Data 101: 5 Things Brands Should Be Tracking and Why

Strategy Maven Agency Links:

• Strategy Maven website
• Book your free account audit here

Show Links:

• Join the Startup CPG Slack community (12K+ members and growing!)
• Follow @startupcpg
• Visit host Jessi's Linkedin or website
• Questions or comments about the episode? Email Jessi at [email protected]
• Episode music by Super Fantastics