James Green

How many of these startup terms are you NOT familiar with? I bet there's at least one.

Be honest.

#startups #startupjargon #startupterms

#1. 𝐓𝐀𝐌/𝐒𝐀𝐌/𝐒𝐎𝐌: total addressable market/serviceable addressable market/serviceable obtainable market. How much of the market can realistically be captured.

#2. 𝐌𝐕𝐏: minimum viable product. The simplest version of your product that helps users solve the problem.

#3. 𝐁𝐮𝐫𝐧 𝐫𝐚𝐭𝐞: gross burn is the company’s total expenses in a given period. Net burn is how much cash is actually being spent (after income).

#4. 𝐑𝐮𝐧𝐰𝐚𝐲: how many months your business can keep operating before it runs out of money.

#5. 𝐌𝐑𝐑: monthly recurring revenue. The company’s total monthly subscription revenue.

#6. 𝐀𝐑𝐑: annual recurring revenue.

#7. 𝐓𝐓𝐌: trailing twelve months revenue. How much revenue your startup produced in the previous 12 months.

#8. 𝐀𝐑𝐏𝐔: average revenue per user. It costs money to add users, how much is each one worth?

#9. 𝐂𝐀𝐂: customer acquisition cost. How much does it cost to gain a paying user?

#10. 𝐋𝐓𝐕: lifetime value. In total, how much revenue does each user bring before churning?

#11. 𝐓𝐂𝐕: total contract value. The combined value of a customer, including up-front and recurring fees.

#12. 𝐀𝐂𝐕: annual contract value. How much a customer us worth to you over 1 year.

#13. 𝐃𝐞𝐟𝐞𝐫𝐫𝐞𝐝 𝐫𝐞𝐯𝐞𝐧𝐮𝐞: money received for goods / services that have not yet been produced/delivered.

#14. 𝐓𝐨𝐭𝐚𝐥 𝐛𝐢𝐥𝐥𝐢𝐧𝐠𝐬: actual revenue plus deferred revenue.

#15. 𝐌𝐀𝐔/𝐖𝐀𝐔/𝐃𝐀𝐔: monthly / weekly / daily active users. The number of people who engage with your product.

#16. 𝐂𝐨𝐧𝐯𝐞𝐫𝐬𝐢𝐨𝐧 𝐫𝐚𝐭𝐞: in SaaS, the percentage of users that upgrade from your free tier to a paid tier.

#17. 𝐂𝐌𝐆𝐑: compound monthly growth rate. Often just called month-on-month growth rate.

#18. 𝐂𝐀𝐆𝐑: compound annual growth rate. Same as above but annualised. CAGR (%) = (Ending Value ÷ Beginning Value) ^ (1 ÷ Number of Periods) – 1.

#19. 𝐑𝐞𝐭𝐞𝐧𝐭𝐢𝐨𝐧: the percentage of users or customers which return to your service or use your product within a defined time period.

#20. 𝐆𝐫𝐨𝐬𝐬 𝐜𝐡𝐮𝐫𝐧: literally “gross monthly recurring revenue churn rate” - the percentage of revenue lost due to cancellation or downgrades.

#21. 𝐍𝐞𝐭 𝐜𝐡𝐮𝐫𝐧: the percentage of revenue lost from existing customers minus “expansion revenue” from upgrades or add-ons.

#22. 𝐍𝐞𝐠𝐚𝐭𝐢𝐯𝐞 𝐜𝐡𝐮𝐫𝐧: when expansion revenue is greater than revenue lost through gross churn.

#23. 𝐙𝐞𝐫𝐨 𝐦𝐚𝐫𝐠𝐢𝐧𝐚𝐥 𝐜𝐨𝐬𝐭: where an additional unit can be produced and sold without any increase in the total cost of production, as with software and media.

#24. 𝐑 + 𝐊 > 1: a metric for tracking growth powered by retention (R) and virality (K) and not just paid marketing.

Credit to Peng Ong for #24.

Full article: https://lnkd.in/d4yjmWU7

What should be on your website if you're a new startup, and should you even have a site if you're pre-product?

This is something our founders often ask us.

So what do we say?

...

If you've been reading my posts you'll know that DQ Ventures helps people who haven't yet made the leap to entrepreneurship turn an idea into a startup.

We act as cofounders to help deliver a prototype, early traction and funding.

We believe in launching a website as soon as you've nailed down the problem you're solving. If you can describe your solution to your target audience there's typically no reason to hold back.

(Trust me, your issue is not someone stealing your idea, it's persuading someone to take your idea seriously!)

...

A website almost ALWAYS comes before incorporating your company, because it's going to help you prove there's a market for what you're building.

We're big believers in DISTRIBUTION > PRODUCT.

In other words, you need to prove (if only to yourself!) there's a problem worth solving before you start solving it. Having a live website is usually an obvious step towards creating that proof.

It's never too early to start testing your messaging, creating conversations with users, and building a database of potential customers.

...

Below you'll find a template showing what you can include on the first version of your website.

Please share it with any future startup founders that might find it helpful.

And we love feedback: how would you improve this?

...

P.S. If you need help putting together a site and aren't comfortable using Wix, Webflow or Wordpress, have a chat with our tech partners, Blue Mongoose. They're nice.

P.P.S. Credit to Emily Kramer, Justin Welsh, Rachel Savage, Harry Dry, Sam Browne and all the other people generously sharing ideas and tactics for people like us to build on top of.👏

#startupmarketing #earlystage #websitetemplate