Financing
Companies are required to pay back this type of financing.
What is debt?
Unlike factories or cash reserves, these intangible strengths—like brand reputation, culture, or expertise—can be a company's most enduring source of advantage.
What are core competencies?
This is the type of revenue model that a retail store that only t-shirts has.
What is a transactional model?
This metric shows how much profit a customer brings over the entire relationship.
What is LTV?
This is how often budgets are usually created.
What is annually?
This is what M&A stands for.
What is Mergers & Acquisitions?
This type of stock is usually the last to get paid out when a company is sold or liquidated.
What is common stock?
This type of competitor doesn’t exist in your market yet—but could emerge if a large company pivots into your space, like Amazon entering pharmacy delivery.
What is a future competitor?
Netflix, Spotify, and many SaaS companies rely on this predictable revenue model, where users pay monthly or annually for continued access.
What is a subscription model?
A high percentage in this monthly or annual metric signals users are leaving your product—and fast.
What is churn?
These are forward looking and based on scenarios and “what-ifs”
What are projections?
This financial concept looks at the revenue and costs associated with a single customer, product, or transaction—often used to evaluate business sustainability.
What is unit economics?
A major downside of raising equity is this -- when a founder has to give up partial ownership of their company.
What is dilution?
A core competency is something your company does well; this, on the other hand, is how you win in the marketplace using that competency.
What is a strategic (competitive) advantage?
This revenue model involves selling a primary product at a low cost—or even at a loss—while profiting from recurring sales of complementary consumables.
What is a razor & blade model?
This metric measures the percentage of users who take a desired action—like signing up, making a purchase, or clicking “Buy Now”—out of the total number of visitors.
What is conversion?
In this approach to budgeting, projections are based on operational realities, rather than industry data, making it more detailed and often more accurate.
What is bottoms up?
What is minimum viable product?
If Alondra wants to own 10% of your company and is investing $2M - what is the pre-money valuation of the company?
What is $18M?
DAILY DOUBLE
Though Netflix is a streaming platform, this form of competition includes books, video games, and sleep.
Ebay operates as a marketplace connecting buyers and sellers. A company like this generally has this type of business model? (There is more than 1 answer)
What is commission?
What is fee-based? (Listing fees, transaction fees)
This metric is calculated by subtracting the cost of goods sold (COGS) from revenue
What is Gross Profit?
What is Gross Margin?
Strong budgets and projections are built on a clear set of these—about pricing, customer growth, churn, and more. They must be solid and defensible.
What are assumptions?
This type of financing usually happens after a company has run out of resources to continue to bootstrap. It is usually the first round of external financing
What is angel investors?
What is a seed round?
You sell your company for $5M. Your investors include: Samiya's Venture Fund who invested $4M in equity and The Bank of Sadman who lent you $2M. How much money does Samiya receive in the payout?
What is $3M
This type of competitor often wins by being more agile, deeply understanding a specific customer segment, and delivering specialized value that large incumbents struggle to match.
What is a niche competitor?
This is a con of a transaction model.
No guarantee of return business
Usually higher CAC
This is the formula to determine to if your CAC Ratio is working properly.
What is LTV/CAC?
DAILY DOUBLE
This involves regularly updating your original budget with actual performance data.
This market sizing metric represents the realistic revenue opportunity available to a company if it captured 100% of the market based on the specific business model that it is operating.
What is SAM?