Vocabulary
how you are better, the customer benefit, better than competitors
Value Proposition
Three things to consider with customers
Pains, gains, goals
Things to know before start up
Revenue Streams, Pricing, Profitability, Startup Costs
Slang term for not making money
In the red
How companies generate cash from customer segments
Revenue
Customer discovery, research, experimentation proved assumptions were correct
Persevere
Types of customer goals
Functional, social, emotional, basic needs
Things to consider for revenue
how much a customer will pay, payment method, different revenue streams
Slang term for making money
In the black
Asset sale, usage fee, Subscriptions, leasing, licensing, advertising
Types of revenue streams
Customer discovery, research, experimentation proved assumptions were right but needs fine-tuning
Iterate
Types of customer pains
Cost, complaints (difficulties), risks, mistakes
Retail Price-Wholesale Price=
Profit
ratio that compares the gain/loss from an investment relative to cost
ROI
Costs incurred when staring a business
Startup costs
Customer discovery, research, experimentation proved assumptions are flawed
Pivot
Types of customer gains
Savings, outcomes, easier, success
Examples of startup costs (2)
goods, R&D, Office supplies, furniture/equipment, technology, insurance, rent
5 Cs of Credit (2)
Collateral, Credit, Capacity, Capital, Character
Costs incurred regularly to keep business running
Ongoing costs
Determines the net income/loss for a fiscal period
Income statement
Features for customers
Tangible, Intangible, Digital, Financial
Examples of Ongoing costs (3)
Rent, Payroll, Utilities, Insurance, Security, Accounting/Legal fees, Inventory, Marketing
Building a company from the ground up with nothing but personal savings and cash from sales
Bootstrapping
Used to forecast current and future revenue and expenses
Budgeting