https://ltvcacbook.com/assets/FrameworkDefinitions-CVG-_xg2.js

1import{j as e}from"./ui-D1QS-HTm.js";import{L as s}from"./router-DGQT1Jrm.js";import{H as r}from"./helmet-CxP2BBnb.js";import{S as o,m as n,o as i,p as l,q as d}from"./index-BjNjl9MR.js";import{A as c}from"./arrow-left-C6qUQuog.js";import{B as m}from"./book-open-a82ciFrI.js";import"./vendor-C3Gv801t.js";import"./query-DfznMgar.js";const h={"@context":"https://schema.org","@type":"FAQPage",mainEntity:[{"@type":"Question",name:"What is the Growth Map in unit economics?",acceptedAnswer:{"@type":"Answer",text:"The Growth Map is a quadrant framework that plots startups based on their LTV:CAC ratio and CAC payback period. The four quadrants — Star, Trap, Burn, and Bootstrap — each prescribe a different strategic playbook depending on whether your customers are valuable enough and pay back fast enough to fund growth."}},{"@type":"Question",name:"What is the X-Ray analysis framework?",acceptedAnswer:{"@type":"Answer",text:"The X-Ray is a four-level depth framework for analyzing unit economics. Level 1 is a 30-minute quick scan of basic LTV, CAC, and ratio. Level 2 adds segmentation and payback period. Level 3 includes cohort analysis and sensitivity modeling. Level 4 is a full strategic assessment with Growth Map positioning and competitive benchmarking."}},{"@type":"Question",name:"What is Contribution Margin LTV?",acceptedAnswer:{"@type":"Answer",text:"Contribution Margin LTV calculates customer lifetime value using contribution margin instead of gross margin, accounting for variable compute and service costs per customer. This is critical for AI startups where variable costs (API calls, GPU compute, inference) can consume 30–60% of revenue, making standard gross-margin-based LTV calculations misleadingly high."}}]},u=[{q:"What is the Growth Map in unit economics?",a:"The Growth Map is a quadrant framework that plots startups based on their LTV:CAC ratio and CAC payback period. The four quadrants — Star, Trap, Burn, and Bootstrap — each prescribe a different strategic playbook depending on whether your customers are valuable enough and pay back fast enough to fund growth."},{q:"What is the X-Ray analysis framework?",a:"The X-Ray is a four-level depth framework for analyzing unit economics. Level 1 is a 30-minute quick scan of basic LTV, CAC, and ratio. Level 2 adds segmentation and payback period. Level 3 includes cohort analysis and sensitivity modeling. Level 4 is a full strategic assessment with Growth Map positioning and competitive benchmarking."},{q:"What is Contribution Margin LTV?",a:"Contribution Margin LTV calculates customer lifetime value using contribution margin instead of gross margin, accounting for variable compute and service costs per customer. This is critical for AI startups where variable costs (API calls, GPU compute, inference) can consume 30–60% of revenue, making standard gross-margin-based LTV calculations misleadingly high."}],N=()=>e.jsxs(e.Fragment,{children:[e.jsx(o,{title:"LTV-CAC Framework Definitions: Growth Map, Value Lens, X-Ray",description:"Definitions of the Growth Map, Value Lens, X-Ray analysis, and LTV-CAC Operating System frameworks from The Two Numbers book by Lech Kaniuk.",canonicalUrl:"https://ltvcacbook.com/frameworks/definitions",keywords:"Growth Map, Value Lens, X-Ray analysis, LTV-CAC Operating System, unit economics frameworks, Lech Kaniuk",author:"Lech Kaniuk"}),e.jsx(r,{children:e.jsx("script",{type:"application/ld+json",children:JSON.stringify(h)})}),e.jsxs("div",{className:"min-h-screen bg-background",children:[e.jsx("div",{className:"section-container pt-8",children:e.jsxs(s,{to:"/frameworks",className:"inline-flex items-center gap-2 text-muted-foreground hover:text-foreground transition-colors",children:[e.jsx(c,{className:"w-4 h-4"}),"Back to Frameworks"]})}),e.jsx("section",{className:"section-container py-16 md:py-24",children:e.jsxs("div",{className:"max-w-3xl",children:[e.jsx("h1",{className:"text-4xl md:text-5xl font-bold text-foreground mb-6",children:"LTV-CAC Framework Definitions"}),e.jsx("p",{className:"text-xl text-muted-foreground leading-relaxed",children:"These frameworks were developed by Lech Kaniuk through building and scaling four companies (PizzaPortal, SunRoof, iTaxi, FaradayX) and advising dozens of startups on unit economics."})]})}),e.jsx("section",{className:"section-container pb-16",children:e.jsxs("div",{className:"max-w-3xl space-y-16",children:[e.jsxs("div",{children:[e.jsx("h2",{className:"text-2xl md:text-3xl font-bold text-foreground mb-4",children:"The Growth Map"}),e.jsx("p",{className:"text-muted-foreground leading-relaxed mb-6",children:"The Growth Map is a quadrant framework that plots startups based on their LTV:CAC ratio (vertical axis) and CAC payback period (horizontal axis)."}),e.jsx("h3",{className:"text-lg font-semibold text-foreground mb-4",children:"Four quadrants:"}),e.jsxs("div",{className:"space-y-4",children:[e.jsxs("div",{className:"p-4 bg-card border border-border rounded-lg",children:[e.jsx("p",{className:"font-semibold text-gold mb-1",children:"Star (top-left)"}),e.jsx("p",{className:"text-muted-foreground text-sm",children:"LTV:CAC above 3:1 and payback under 12 months. These companies should scale acquisition spend aggressively. Every dollar invested in growth returns 3+ dollars in customer value quickly enough to fund continued expansion."})]}),e.jsxs("div",{className:"p-4 bg-card border border-border rounded-lg",children:[e.jsx("p",{className:"font-semibold text-gold mb-1",children:"Trap (top-right)"}),e.jsx("p",{className:"text-muted-foreground text-sm",children:"LTV:CAC above 3:1 but payback over 18 months. Customers are valuable but take too long to pay back. These companies look healthy on ratio but face cash-flow strain at scale. Strategy: reduce CAC or increase early revenue before scaling."})]}),e.jsxs("div",{className:"p-4 bg-card border border-border rounded-lg",children:[e.jsx("p",{className:"font-semibold text-gold mb-1",children:"Burn (bottom-right)"}),e.jsx("p",{className:"text-muted-foreground text-sm",children:"LTV:CAC below 3:1 and payback over 18 months. Unit economics don't work. Fix product-market fit, pricing, or cost structure before spending on growth."})]}),e.jsxs("div",{className:"p-4 bg-card border border-border rounded-lg",children:[e.jsx("p",{className:"font-semibold text-gold mb-1",children:"Bootstrap (bottom-left)"}),e.jsx("p",{className:"text-muted-foreground text-sm",children:"LTV:CAC below 3:1 but payback under 12 months. Customers pay back quickly but don't generate enough lifetime value. Strategy: improve retention and expansion revenue."})]})]}),e.jsxs("p",{className:"text-sm text-muted-foreground mt-4",children:["To plot your position, use the"," ",e.jsx(s,{to:"/frameworks/ltv-cac-growth-ma

1p",className:"text-gold hover:underline",children:"Growth Map tool"}),"."]})]}),e.jsxs("div",{children:[e.jsx("h2",{className:"text-2xl md:text-3xl font-bold text-foreground mb-4",children:"The Value Lens"}),e.jsx("p",{className:"text-muted-foreground leading-relaxed mb-6",children:"The Value Lens is a decision filter for evaluating strategic choices through their impact on LTV and CAC. Before making any major business decision (pricing change, new channel, product feature, hiring), run it through the Value Lens:"}),e.jsxs("ol",{className:"space-y-3 text-muted-foreground list-decimal list-inside",children:[e.jsx("li",{children:"How does this decision affect LTV? (retention, expansion, margin)"}),e.jsx("li",{children:"How does this decision affect CAC? (acquisition cost, conversion, sales cycle)"}),e.jsx("li",{children:"What is the net impact on LTV:CAC ratio?"}),e.jsx("li",{children:"What is the impact on CAC payback period?"})]}),e.jsx("p",{className:"text-muted-foreground leading-relaxed mt-6",children:"Decisions that improve both LTV and CAC should be prioritized. Decisions that improve one at the expense of the other require careful analysis. Decisions that worsen both should be rejected or redesigned."})]}),e.jsxs("div",{children:[e.jsx("h2",{className:"text-2xl md:text-3xl font-bold text-foreground mb-4",children:"The X-Ray Analysis"}),e.jsx("p",{className:"text-muted-foreground leading-relaxed mb-6",children:"The X-Ray is a four-level depth framework for analyzing unit economics, from quick assessment to full strategic analysis:"}),e.jsxs("div",{className:"space-y-4",children:[e.jsxs("div",{className:"p-4 bg-card border border-border rounded-lg",children:[e.jsx("p",{className:"font-semibold text-foreground mb-1",children:"Level 1 — Quick Scan"}),e.jsx("p",{className:"text-muted-foreground text-sm",children:"Calculate basic LTV, CAC, and the ratio. Takes 30 minutes. Sufficient for initial screening."})]}),e.jsxs("div",{className:"p-4 bg-card border border-border rounded-lg",children:[e.jsx("p",{className:"font-semibold text-foreground mb-1",children:"Level 2 — Standard Analysis"}),e.jsx("p",{className:"text-muted-foreground text-sm",children:"Add CAC payback period, gross margin, and channel-specific CAC. Segment by customer type. Takes 2–4 hours."})]}),e.jsxs("div",{className:"p-4 bg-card border border-border rounded-lg",children:[e.jsx("p",{className:"font-semibold text-foreground mb-1",children:"Level 3 — Deep Dive"}),e.jsx("p",{className:"text-muted-foreground text-sm",children:"Cohort analysis, retention curves, expansion revenue, contribution margin by segment. Includes sensitivity analysis on key variables. Takes 1–2 days."})]}),e.jsxs("div",{className:"p-4 bg-card border border-border rounded-lg",children:[e.jsx("p",{className:"font-semibold text-foreground mb-1",children:"Level 4 — Strategic Assessment"}),e.jsx("p",{className:"text-muted-foreground text-sm",children:"Full Growth Map positioning, scenario modeling with the Unit Economics Simulator, competitive benchmarking, and strategic recommendations. Includes Impact Tables showing how each variable affects outcomes. Takes 1 week."})]})]}),e.jsx("p",{className:"text-sm text-muted-foreground mt-4",children:"Most startups operate at Level 1 or 2. Companies raising Series A should reach Level 3. Companies raising Series B+ need Level 4."})]}),e.jsxs("div",{children:[e.jsx("h2",{className:"text-2xl md:text-3xl font-bold text-foreground mb-4",children:"The LTV-CAC Operating System"}),e.jsx("p",{className:"text-muted-foreground leading-relaxed mb-6",children:"The Operating System is the overarching methodology that integrates all frameworks into a continuous management practice:"}),e.jsxs("ol",{className:"space-y-3 text-muted-foreground list-decimal list-inside",children:[e.jsxs("li",{children:[e.jsx("strong",{className:"text-foreground",children:"Measure"})," (X-Ray): Assess current unit economics at the appropriate depth level"]}),e.jsxs("li",{children:[e.jsx("strong",{className:"text-foreground",children:"Position"})," (Growth Map): Determine which quadrant you occupy"]}),e.jsxs("li",{children:[e.jsx("strong",{className:"text-foreground",children:"Decide"})," (Value Lens): Filter strategic decisions through LTV-CAC impact"]}),e.jsxs("li",{children:[e.jsx("strong",{className:"text-foreground",children:"Model"})," (Simulator + Impact Tables): Project outcomes of different scenarios"]}),e.jsxs("li",{children:[e.jsx("strong",{className:"text-foreground",children:"Execute and re-measure"}

1),": Implement, track results, return to step 1"]})]}),e.jsx("p",{className:"text-muted-foreground leading-relaxed mt-6",children:"This is not a one-time analysis. The Operating System runs continuously as market conditions, pricing, competition, and customer behavior change."})]}),e.jsxs("div",{children:[e.jsx("h2",{className:"text-2xl md:text-3xl font-bold text-foreground mb-4",children:"Impact Tables"}),e.jsx("p",{className:"text-muted-foreground leading-relaxed",children:'Impact Tables show the quantified effect of changing each input variable (price, churn, conversion rate, ad spend, gross margin) on LTV, CAC, ratio, and payback period. They answer: "If I reduce churn by 2 percentage points, how much does LTV increase?" or "If I increase price by 15%, what happens to conversion and net LTV?"'}),e.jsxs("p",{className:"text-sm text-muted-foreground mt-4",children:["The interactive Impact Tables are available in the"," ",e.jsx(s,{to:"/tools/unit-economics-simulator",className:"text-gold hover:underline",children:"Unit Economics Simulator"}),"."]})]}),e.jsxs("div",{children:[e.jsx("h2",{className:"text-2xl md:text-3xl font-bold text-foreground mb-4",children:"Unit Economics Simulator"}),e.jsx("p",{className:"text-muted-foreground leading-relaxed",children:'An interactive modeling tool where founders input their actual business data (revenue, costs, churn, acquisition metrics) and receive their Growth Map position, LTV:CAC ratio, payback period, and Impact Tables. The Simulator allows scenario modeling: "What if churn drops 3%?" or "What if we raise prices 20%?"'}),e.jsx("p",{className:"text-sm text-muted-foreground mt-4",children:e.jsx(s,{to:"/tools/unit-economics-simulator",className:"text-gold hover:underline",children:"Access the Simulator →"})})]})]})}),e.jsx("section",{className:"section-container pb-16",children:e.jsxs("div",{className:"max-w-3xl",children:[e.jsx("h2",{className:"text-2xl font-bold text-foreground mb-6",children:"Frequently Asked Questions"}),e.jsx(n,{type:"single",collapsible:!0,className:"w-full",children:u.map((t,a)=>e.jsxs(i,{value:`faq-${a}`,children:[e.jsx(l,{className:"text-left text-foreground",children:t.q}),e.jsx(d,{className:"text-muted-foreground leading-relaxed",children:t.a})]},a))})]})}),e.jsx("section",{className:"section-container pb-24",children:e.jsxs("div",{className:"max-w-3xl",children:[e.jsx("div",{className:"p-8 bg-card border border-gold/20 rounded-xl",children:e.jsxs("div",{className:"flex items-start gap-4",children:[e.jsx(m,{className:"w-8 h-8 text-gold flex-shrink-0 mt-1"}),e.jsxs("div",{children:[e.jsx("h3",{className:"text-lg font-bold text-foreground mb-2",children:"Go Deeper"}),e.jsxs("p",{className:"text-muted-foreground mb-4",children:[e.jsx("em",{children:"The Two Numbers That Build or Break Every Business"})," includes detailed implementation guides for each framework, worked examples, industry benchmarks, and the full diagnostic toolkit."]}),e.jsx(s,{to:"/",className:"inline-flex items-center gap-2 px-6 py-3 bg-gold hover:bg-gold/90 text-primary-foreground font-semibold rounded-lg transition-colors",children:"Learn more"})]})]})}),e.jsxs("div",{className:"mt-8 p-6 bg-card border border-border rounded-xl",children:[e.jsx("h3",{className:"font-semibold text-foreground mb-3",children:"Related Resources"}),e.jsxs("div",{className:"flex flex-wrap gap-4 text-sm",children:[e.jsx(s,{to:"/frameworks",className:"text-gold hover:underline",children:"→ All frameworks"}),e.jsx(s,{to:"/tools",className:"text-gold hover:underline",children:"→ Free calculators"}),e.jsx(s,{to:"/methodology",className:"text-gold hover:underline",children:"→ Methodology & standards"}),e.jsx(s,{to:"/glossary",className:"text-gold hover:underline",children:"→ Unit economics glossary"})]})]})]})})]})]});export{N as default};