Consulting Core
This type of chart, commonly used in consulting decks, shows how a value increases and decreases from a starting point to an ending point through a series of intermediate steps.
What is a waterfall chart?
A company's revenue is $4M and costs are $3.2M. What is the profit margin?
What is 20%?
CAGR
What is Compound Annual Growth Rate?
Two common approaches to a market sizing case are _______ and _______.
What is top-down and bottom-up?
What is a Nester?
This pricing strategy involves setting a high initial price for a new product and gradually lowering it over time to capture different customer segments.
What is Price Skimming?
A company acquires 2,000 customers/month at $150 CAC. Average customer lifetime is 18 months at $25/month revenue. What is the LTV:CAC ratio?
What is 3:1? (LTV = $450, CAC = $150)
SG&A
What is Selling, General & Administrative (expenses)?
The three C's framework analyzes _______, _______, and _______.
What is Company, Competitors, and Customers?
This person "accidentally" knocked down a painting
Who is Eddie?
This principle states that roughly 80% of outcomes come from 20% of causes, often used to prioritize consulting recommendations.
What is the Pareto Principle?
A market is $500M and growing at 8% annually. What is the market size in 2 years? (Round to Nearest Million)
What is ~$583M?
EBITDA
What is Earnings Before Interest, Taxes, Depreciation, and Amortization?
The four P's of marketing are _____, _____, _____, _____.
Product, Price, Place, Promotion.
This person slept in a crib
Who is Sari?
In a market entry case, this strategy involves a company growing by acquiring or merging with businesses at the same stage of the supply chain.
What is Horizontal Integration?
Company A has 1,200 employees, and each employee generates $250K in revenue. Company B has $400M in total revenue. Which company has more revenue, and by how much?
What is Company B, by $100M?
(A = $300M, B = $400M)
CAPEX
What is Capital Expenditure?
A company's _______ is calculated by subtracting current liabilities from current assets and measures short-term financial health.
What is Working Capital?
This person ran for president as a freshie
Who is Kev?
This concept describes the additional revenue generated by selling one more unit of a product, and it's critical for pricing decisions.
What is Marginal Revenue?
A SaaS company has 50,000 users paying $20/month with a 5% monthly churn rate. A product costs $8 per user to deliver and fixed costs are $3M annually. What is the annual profit?
What is $4.2M?
Revenue: $12M — 50K × $20 × 12.
Variable costs: $4.8M — 50K × $8 × 12.
Fixed: $3M. Profit: $12M - $4.8M - $3M = $4.2M
ARPU
What is Average Revenue Per User?
A company that captures value from every stage of production — from raw materials to end customer — is pursuing a _______ integration strategy.
What is vertical integration?
This person almost drove off the side of a hill
Who is Kalia?