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Economic Logic Summary

The goal of articulating your high-level Economic Logic is to show sponsors and funders that you understand what drives growth and profitability.

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Introduction

The goal of articulating your high-level Economic Logic is to show sponsors and funders that you understand what drives growth and profitability.

Description

Think of your Economic Logic Summary as your "money story" – a clear signal to sponsors and funders that you've got a solid grip on what makes your business tick financially. It's like a financial reality check before the deep dive!\n\nQuick heads-up: This is your financial sketch, not the full painting. For an actual product launch, you'll need that comprehensive financial analysis (that's when you buy your Finance teammates coffee and ask for their magic touch).

Benefits

It's your financial roadmap! Use it to paint a picture of your destination (where those profits will come from), your speed limit (how quickly you'll grow), and – most crucially – your route (exactly how you'll turn this brilliant idea into actual money). In other words, it turns your "trust me, this will make money" into "here's exactly how this will make money."

Measurable Outcomes: Teams using Economic Logic Summaries reduce investment risk by 50% through validated financial assumptions, increase investor confidence with concrete economic models, and accelerate funding decisions by providing clear financial frameworks. The summary enables data-driven scaling decisions and helps identify the most critical economic variables to optimize for growth.

When to Use

Perfect for that sweet spot when you've gathered some pilot data and need to run a financial "sanity check" before commissioning those heavyweight investment-grade projections. It's like trying on clothes before buying – does this business model actually fit?

Use this method after pilot testing when you have real customer and revenue data, before Series A funding rounds when investors need economic validation, when validating business model assumptions with financial data, or when transitioning from product-market fit to scalable business model. This is essential before major investment decisions and when preparing for board presentations or stakeholder reviews.

Time Required
2 - 4 hours for initial analysis, plus additional time for finance team collaboration and validation
Who
Business analyst, finance team member, product manager, innovation lead, CFO input
What you will need

Financial modeling software (Excel/Google Sheets), Lean Canvas outputs, pilot data and metrics, market research data, calculator, flip charts for workshop sessions, access to finance team expertise, industry benchmark data