Understanding the key metrics for business success involves analyzing the LTGP to CAC ratio at the customer level and determining the cost of expanding the business. Return on invested capital is crucial to evaluate how much money it costs to expand. Businesses with minimal capital expenses like service firms have distinct advantages. Calculating the payback period, one-year return, and cash flow at capacity helps in assessing profitability. Aim for a 3 to 1 or ideally 5 to 1 return on investment, ensuring that the business generates significant profit. The goal is to build a sustainable cash flow system that maximizes returns and justifies the time and effort put into the business.

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