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Glossary

MVP (Minimum Viable Product)

The simplest version of a product that can be released to test a core business hypothesis with real users.

Product-Market Fit (PMF)

The degree to which a product satisfies a strong market demand. When users love your product so much that it grows organically.

TAM / SAM / SOM

Three nested measures of market size: Total Addressable Market, Serviceable Addressable Market, and Serviceable Obtainable Market.

Founder-Market Fit

How well a founder's skills, experience, and passion align with the market they're building for.

Lean Startup

A methodology for developing businesses that emphasizes rapid experimentation, validated learning, and iterative product development.

Pivot

A structured course correction designed to test a new fundamental hypothesis about the product, strategy, or growth engine.

Burn Rate

The rate at which a company spends its cash reserves before generating positive cash flow.

Moat (Competitive Moat)

A sustainable competitive advantage that protects a business from competitors, like a medieval castle's moat.

Churn Rate

The percentage of customers who stop using a product or cancel their subscription during a given time period.

Bootstrapping

Building and growing a business using only personal savings and revenue, without external investors.

Unit Economics

The direct revenues and costs associated with a particular business model expressed on a per-unit basis.

Idea Validation

The process of testing and confirming that a business idea addresses a real market need before significant investment.