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Reference

Entrepreneurship Glossary

Clear definitions of essential entrepreneurship and business terms. Use this glossary as a reference while exploring our content.

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B

Bootstrapping
Building a business using personal finances and revenue generated by the business, without external investment.
Burn Rate
The rate at which a company spends its capital before generating positive cash flow, typically measured monthly.
Business Model Canvas
A strategic management template for developing new or documenting existing business models, covering nine key components.

C

Customer Acquisition Cost (CAC)
The total cost of acquiring a new customer, including marketing and sales expenses.
Customer Lifetime Value (CLV)
The total revenue a business can expect from a single customer account throughout the business relationship.

E

Equity
Ownership interest in a company, often expressed as a percentage of total shares.
Exit Strategy
A planned approach for founders or investors to realize returns on their investment, such as acquisition or IPO.

F

Freemium
A business model where basic services are free, with premium features available for payment.

L

Lean Startup
A methodology for developing businesses and products that emphasizes rapid iteration and customer feedback.

M

Minimum Viable Product (MVP)
A product with sufficient features to satisfy early customers and provide feedback for future development.

P

Pivot
A fundamental change in business strategy when the current approach is not achieving desired results.
Product-Market Fit
The degree to which a product satisfies strong market demand.

R

Revenue Model
The strategy a company uses to generate income from its products or services.
Runway
The amount of time a company can operate before running out of capital, based on current spending rate.

S

Scalability
The ability of a business to grow and manage increased demand without proportional increases in costs.
Seed Funding
Initial capital used to start a business, often from founders, friends, family, or angel investors.
Stakeholder
Any individual or group that has an interest in or is affected by a business's activities.

T

Traction
Evidence that a business is gaining momentum, often measured by revenue, users, or other key metrics.

U

Unicorn
A privately held startup company valued at over one billion dollars.

V

Value Proposition
A statement describing the unique value a product or service provides to customers.
Venture Capital
Investment funding provided to startups with high growth potential in exchange for equity.
Vertical Integration
Business strategy where a company controls multiple stages of its supply chain.

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