An experiment is a process that is executed in order to refute, support, or validate a hypothesis. You can gain valuable insights into cause and effect by running an experiment to see what outcome follows when one factor is adjusted.
Accounting is the task of processing, measuring, and communicating information regarding a business. This information can be either financial or non-financial in nature.
“Innovation” primarily refers to taking a current solution or process and improving or modifying it in such a way that it creates more value. These days, however, the term can also be used to refer to a new invention, such as a product, service, or process.
You are said to be “bootstrapping” when you grow your business with little or no outside investment as venture capital. Instead, you might use your own savings or revenues.
A business model explains how a business delivers, creates, and captures value, or how it will do so in the future.
This process can help you test your theories and assumptions about aspects of your business, such as how your customers would use your products.
A venture capitalist provides funds to a startup through a type of private equity financing in which the venture capitalist usually expects a high level of growth. This usually takes place in the early, middle, or late stages of the startup.
An angel investor provides capital to a startup in exchange for ownership equity or debt. In the early stages of a startup, when an entrepreneur struggles to get funding from venture capitalists, angel investors are usually an important source of capital.
Customer Lifetime Value
This refers to predictions regarding the net profit that will accrue from coming acquisitions and relationships with future customers.
This is a methodology that you can use when developing products or services for which you want a shortened development cycle. This method will help you understand as quickly as possible whether your product or service has value, or whether your business model is viable.
Minimum Viable Product
This would be a version of your product that has the minimum number of features you need to test your hypotheses and give you the necessary feedback so that you can develop your value proposition further.
This is a plan that sets out your goals for the business, your ideas for how to achieve those goals, and the timeframe and resources that you will need.
You may reach a critical moment with your startup when you must decide either to carry on or to pivot. To “pivot” means to go in a new direction, which can mean changing the value proposition.
This refers to the number of users or customers who have dropped off. Churn rates are critical to measure to help you understand your customer retention rate and estimate how many people will keep using your product.
Cost of Acquisition
This is the cost that you must absorb to acquire a customer: that is, to get him or her to buy your products or services.
You create customer archetypes in order to understand your customers better. These archetypes are often based on customers’ behaviors and habits.
This refers to the methodology that you will use to gain and understand customers when you build your startup.
This is a methodology that you can use to develop design concepts. It includes cognitive, strategic, and practical processes.
This refers to the decrease in a production process’ marginal output as one factor increases while all the other factors stay constant.
These are the first customers who adopt a product or service, before the general population does.
“Equity” refers to what a company’s shareholders own within the company: their ownership stake in any asset after debts associated with that asset are subtracted.
This refers to the process of converting something into money.
This refers to the rate at which a company is losing money.
Waterfall Development Model
This model is often used in software development. You break the development- and projectrelated tasks down into linear, sequential phases, and you need to finish the first phase before starting the next one.
A marketing plan describes your goals and your ideas for how you will use marketing strategies to achieve those goals. The strategy piece also includes tactics and an action plan for your overall marketing strategy.
Financial Statements: P & L, Balance Sheet (Financial Projections)
These are structured records of a business’ financial position and activities, including its profit and loss.
A cap (capitalization) table lists the percentage of ownership, equity dilution, and value of the equity from each round of investment by funders, investors, and others.