As a new founder, it’s important to understand the jargon that is often used in the startup world. By knowing what these terms mean, you will be better equipped to navigate the waters of the startup scene and will be able to have more meaningful conversations with others in the industry.
1. MVP (Minimum Viable Product)
MVP is a scaled-down, bare-bones version of your product that helps you to test the most important assumptions about your business. By building an MVP, you can get feedback from your target market quickly and cheaply, which will help you to determine whether or not your business idea is viable.
2. MVS (Minimum Viable Segment)
In business, there are two types of customers: those who are willing and able to pay your asking price, and those who are not. The second group is known as your “minimum viable segment” (MVS), and it’s the target market that you should focus on when you’re first starting out.
3. Value Proposition
Value proposition is a statement that summarizes the benefit that your product or service offers to your customer. It’s one of the most important things that you need to nail down before you launch your business because it helps to differentiate you from your competitors.
Lean is a term that’s used to describe a company or organization that’s efficient and effective. In other words, it’s a company that operates in a way that minimizes waste and maximizes results.
Validation is the process of confirming or disproving your assumptions about your business. It’s an essential part of the startup journey because it helps you to determine whether or not your idea is actually worth pursuing. In order to validate your idea, you need to put it in front of your target market and see how they react. If they like it, then you’re on the right track! If not, then it’s time to go back to the drawing board.
6. Product-Market Fit
Product-market fit is a term that’s used to describe the point at which your product is perfectly matched with the needs of your target market. When you achieve product-market fit, you’ll see rapid growth and strong customer engagement. In this video, we’ll explain what product-market fit is and share some tips for achieving it.
Pivot is a change in direction that a company makes when its original plan isn’t working. It’s often a necessary step in the startup journey because it allows you to adapt to changing circumstances and find a better path forward. Watch this video to learn more about pivots and how to know when it’s time to make one.
Bootstrapping is a term that’s used to describe the process of starting a business with limited resources. It’s an attractive option for many entrepreneurs because it allows them to avoid taking on debt or giving up equity in their company.
9. Startup Investor
Startup Investor is somebody who provides financial backing to early-stage companies in exchange for a share of ownership. These investors are often looking for businesses that have high potential growth and are willing to take risks.
Disruption is a term that’s used to describe a company or organization that’s inefficient and ineffective. In other words, it’s a company that operates in a way that minimizes waste and maximizes results.
As a first-time founder, it’s important to familiarize yourself with these terms so that you can hit the ground running. By understanding the startup jargon, you’ll be better equipped to navigate the waters of the startup scene and make your business a success.