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balance sheet
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financial statement that summarizes a company’s financial condition according to the accounting equation
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breakeven point
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level of operations that results in exactly enough revenue to cover costs
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business model
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plan for how venture will be funded; how the venture creates value for its stakeholders, including customers; how the venture’s offerings are made and distributed to the end users; and the how income will be generated through this process
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business model canvas
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developed by Osterwalder and Pigneur, used to develop a business model for a venture, including nine blocks that are mapped out to address customer segments, customer relationships, channels, revenue streams, value propositions, key partners, key activities, key resources, and cost structure
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business model innovation
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occurs when an existing business fundamentally changes their business model
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business plan
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formal document that typically describes the business and industry, market strategies, sales potential, and competitive analysis, as well as the company’s long-term goals and objectives
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competitive matrix
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shows how and why a startup has a clear if not measurable competitive advantage for relevant features/benefits by weight according to customers, such as price and quality in relation to competitors
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customer empathy map
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portrayal of a target customer, the most promising candidate from a business’ customer segments, which explores the understanding of that person’s condition from their perspective to understand his or her problems and needs
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disruptive innovation
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process that significantly impacts the market by making a product or service more affordable and/or accessible often by smaller companies in an industry
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executive summary
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initial section of a business plan document that summarizes the key elements of the entire plan
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feasibility analysis
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feasibility analysis is the process of determining if a business idea is viable; it includes testing the viability of your product or service, evaluating your management team, assessing the market for your concept, and estimating financial viability
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financial analysis
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forecasts revenue and expenses; projects a financial narrative; and estimates project costs, valuations, and cash flow projections
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fixed costs
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costs that do not change, regardless of the amount of sales
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go-or-no-go decision
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determination to proceed with or abandon a plan or project
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innovation
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new idea, process, or product, or a change to an existing product or process
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lean model canvas
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developed by Ash Maurya as a derivation of the original business model canvas; this canvas differs by addressing unfair advantages, problems, solutions, and key metrics rather than customer relationships, key partners, key activities, and key resources
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market analysis
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analysis of the overall interest in the product or service within the industry by its target market
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projected cash flow
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outline of preliminary expenses, operating expenses, and reserves
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serviceable available market (SAM)
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portion of the market that a business can serve based on its products, services, and location
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social business model canvas
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modification of the business model canvas, designed for social entrepreneurship venues; new areas address impact measures around social impacts and its measurement, surplus, beneficiary segments and social and customer value propositions
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SWOT analysis
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strategic analytical tool used to help a potential venture or existing company identify its strengths, weaknesses, opportunities, and threats related to business competition
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total available market (TAM)
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total perceived demand for a product or service within the marketplace
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value proposition
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summary describing the benefits (value) customers can expect from a particular product or service
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value proposition canvas
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one of the nine blocks on the business model canvas, this additional tool developed by Osterwalder and Pigneur is designed to illustrate a deeper dive into customer understanding and value creation of a business
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variable costs
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costs that fluctuate with the level of revenue