Business Planning Glossary

A financial statement showing a company's assets, liabilities, and equity at a specific point in time.

The sales volume at which total revenue equals total costs, resulting in neither profit nor loss.

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

The framework describing how a company creates, delivers, and captures value.

A one-page strategic tool mapping nine building blocks of a business, created by Alexander Osterwalder.

A formal document outlining a company's objectives, strategies, market analysis, and financial projections.

The net amount of cash moving into and out of a business during a specific period.

An attribute that allows a company to outperform its competitors, such as lower costs or differentiated offerings.

The total cost of acquiring a new customer, including marketing, sales, and onboarding expenses.

The total net revenue expected from a customer over the entire duration of their relationship with the business.

A concise overview of the entire business plan, typically the first section read by investors.

A planned method for owners or investors to liquidate their stake in a business, such as an IPO or acquisition.

Forward-looking estimates of revenue, expenses, cash flow, and profitability, typically spanning three to five years.

A revenue model offering basic features for free while charging for premium features or capacity.

Revenue minus cost of goods sold, expressed as a percentage of revenue, indicating production profitability.

The process of dividing a broad market into distinct subgroups of customers with shared needs or characteristics.

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

The section of a business plan detailing day-to-day processes, supply chain, and resource requirements.

A fundamental change in business strategy based on validated learning while retaining prior insights.

A framework analyzing five competitive forces that shape industry profitability and strategic positioning.

The strategy a company uses to generate income from its products or services.

The length of time a startup can continue operating before its cash reserves are exhausted.

A framework evaluating internal Strengths and Weaknesses and external Opportunities and Threats.

The total revenue opportunity if a product or service achieved 100% market share in its target market.

A statement describing the unique benefits offered to customers and why the product is superior to alternatives.