The A – Z startup terms you need to know: A – D

The A – Z startup terms you need to know: A – D

Startups have their own magic and words, the Startup lingo, and entering this thriving startup ecosystem can be overwhelming, especially when there’s so many terms to wrap your head around. If you can gain an understanding of the “lingo”, you’ll find it easier to meet and network with other founders, and speak to potential investors or sponsors! 

In this blog, we are covering the first few letters of the alphabet, so read on for A – D of startup terms you need to know.

 

ANGEL INVESTOR:

An individual who invests their own money at an early stage, in exchange for a share in the company. Some investors can also form angel groups to invest in bigger business opportunities. Angel investors often become part of the enterprises’ advisory or governance Board.

 

B2B (BUSINESS-TO-BUSINESS):

Selling products or services to businesses rather than to an individual consumer. 

 

B2C (BUSINESS-TO-CONSUMER):

Selling products or services directly to consumers who are the end-users of the products or services.

 

B2G (BUSINESS-TO-GOVERNMENT):

Selling products, services or information to governments or government agencies.

 

BREAK EVEN:

The point at which neither profit nor loss is made (also known as the “break-even point”). Break even is often used to determine what level of sales are necessary to cover the company’s total fixed costs.

 

CHURN:

The percentage of customers that stopped using your company’s product or service during a certain time frame. Churn rate can be calculated by dividing the number of customers you lost during that time period by the number of customers you had at the beginning of that time period.

 

COMPETITIVE ADVANTAGE:

A competitive advantage is an attribute that allows a company to outperform its competitors. Competitive advantages help a company to achieve superior margins compared to its competition, and generates value for the company and its shareholders. A competitive advantage must be difficult, if not impossible, to duplicate. If it is easily copied or imitated, it is not considered a competitive advantage.

 

CONVERSION RATE:

The percentage of visitors to your website, landing page, or marketing channels who take a desired action.The desired action can take many forms, varying from site to site. Examples include sales of products, membership registrations, newsletter subscriptions, software downloads, or just about any activity beyond simple page browsing.

 

CAC (CUSTOMER ACQUISITION COST):

A company’s customer acquisition cost is the total sales and marketing cost required to earn a new customer over a specific time period.

 

CLTV (CUSTOMER LIFETIME VALUE):

Customer LifeTime Value refers to the amount of revenue that you expect to generate from a customer during the period over which your service will be of value. For example, if a customer signs up for your product for a duration of 9 months, the amount that he will pay during the period will determine the lifetime value.

 

DISRUPTION:

Disruption describes a process by which a product or service is established initially in simple applications at the bottom of a market, and then relentlessly moves up market, eventually displacing established competitors.

 

If you’re interested in learning more about Startup Gippsland and how we can help you build and scale your business, be sure to take a look at our website. 

 

 

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