---
name: model-business-economics
description: Model revenue, pricing, volume, variable and fixed costs, contribution margin, acquisition, retention, cash flow, break-even, scenarios, sensitivity, and economic levers. Use for business economics, unit economics, profitability, forecasts, scenario planning, or deciding whether a model can work financially.
---
# Model Business Economics
1. Define decision, currency, tax basis, period, business model, cohorts, capacity, and accounting boundary.
2. Separate historical facts, current quotes, assumptions, and formulas; verify current prices or rates when material.
3. Model revenue drivers, direct costs, contribution, acquisition, retention/churn, support, overhead, working capital, and cash timing.
4. Build base, downside, upside, break-even, and sensitivity cases; identify assumptions that dominate outcomes.
5. Check units, double counting, cohort logic, timing, and false precision.
6. Return assumption table, model equations, scenarios, KPI tree, break-even, sensitivities, risks, and next data needed. Require qualified review for consequential financial decisions.