Reference
Glossary
Plain-language definitions of the terms we use, so nothing gets lost in translation.
Product-market fit
The moment when a product clearly satisfies a market that wants it: customers buy, stay, and recommend it without needing much convincing.
Minimum viable product
The simplest version of a product that allows you to learn from real customers at the lowest possible cost. Its goal is to validate a hypothesis, not to impress. Abbreviated as MVP.
Go-to-market
The plan for bringing a product to market: the ideal customer, positioning, pricing, channels, and the sales process. Abbreviated as GTM.
Ideal customer profile
A precise description of the type of customer who gets the most value from your product and who delivers the most value to your startup. Focusing sales on this customer shortens the path to first revenue. Abbreviated as ICP.
Unit economics
The revenues and costs of a single unit of business, such as one customer or one order. When unit economics are healthy, growth makes the company stronger rather than more fragile.
CAC and LTV
CAC is the cost of acquiring a new customer; LTV is the value that customer generates over the entire relationship with the company. A healthy startup comfortably recoups what each customer costs to acquire.
Runway
The number of months a startup can operate with its current cash at its current burn rate. It defines how much time remains to reach the next milestone or the next funding round.
North Star Metric
The single indicator that best reflects the value customers receive and that, as it grows, drives business growth. It aligns the priorities of the entire team.