Start-Up Lecture Notes Flashcards

Start Up Test Revision

Design Thinking

A way of finding solutions to problems by putting the people who will use it at the centre of the process, making things like products, services, and experiences that are made with the user in mind.

Empathise

The first step in Design Thinking, where designers try to understand and get into the shoes of the people they are making things for.

Define

The stage of the Design Thinking process where you clarify and articulate the problem you are trying to solve.

Ideate

The stage of the Design Thinking process where you generate a wide range of potential solutions to the problem at hand through brainstorming and concept development.

Prototype

Creating a working model of a solution to test and validate its feasibility, user experience, and potential impact.

Test

The stage of the Design Thinking process where you evaluate the impact and effectiveness of your prototypes by gathering feedback from users.

Sprint

Sprint means a short, focused period of time (usually 1 to 2 weeks) where a team works intensely on a specific goal or task, like building a feature, testing an idea, or solving a problem.

A focused and time-boxed effort by a start-up team to rapidly progress their idea to quickly validate or invalidate a hypothesis.

Elevator Pitch

A brief (normally 60 seconds or less), persuasive speech that provides a concise overview of a product, service, or idea.

Problem Statement

Clearly defines a problem that a start-up is trying to solve, following the template: “The customer” needs a way to “problem” because “interesting insight”.

Opportunity Statement

Describes the opportunity that a start-up is trying to pursue, reframing the problem statement in a positive way, beginning with “How Might We….”

Customer Empathy Map

A visual tool used to understand and document the perspectives, needs, and behaviours of a target customer.

Pains

The challenges, difficulties, or problems that customers experience in a particular area of their lives.

Gains

The benefits, outcomes, or rewards that customers want to achieve in a particular area of their lives.

Customer Discovery Interviews

Interviews with potential customers used to validate or invalidate a start-up hypothesis and gather insights into customer needs, behaviours, and motivations.

Assumptions

Ideas that a start-up has about why a problem is happening or what will happen if they fix it, which need to be checked for accuracy.

TAM

Total Addressable Market, the total amount of money your business could make if everyone who might need the product buys it.

SAM

Serviceable Available Market, the part of the total market that your business can actually serve with what you offer right now.

SOM

Serviceable Obtainable Market. It’s the portion of the market that your startup can realistically reach and serve right now, given your current resources.

Profit

How much money your business makes from people buying your product. The business is making more money that it is spending.

Loss

Spending more money than making money. Your business is losing money.

Capital

Capital is the money (or other resources) that a business needs to get started and keep running until it starts making enough profit.

Debt Financing

Borrowing money that needs to be paid back with interest over time.

Equity Financing

When a start-up raises money by selling shares (ownership) of their business. These investors then get part of the business’s profit.

Bootstrapping

Using your own money to build a start-up rather than seeking outside investors.

Seed Funding

Seed funding is the initial money a startup gets to help it grow from an idea to a real business.

Crowdfunding

Crowdfunding is when a business raises money by asking a large number of people (usually through the internet) to each contribute a small amount of money.

Angel Investor

Someone who gives money to a small business in exchange for partial ownership at the very early stages of the business.

Venture Capitalist

A venture capitalist is a person or firm that invests into a company that they think has a lot of potential in exchange for partial ownership

Segmentation

Segmentation in a startup simply means dividing a large group of potential customers into smaller, more manageable groups based on specific characteristics.

Brand

A brand is the way a company presents itself. It includes the company's name, logo, and colours.

Branding Assets

Branding assets in a startup are the materials and tools that help create and communicate the brand's identity.

Marketing Strategy

A marketing strategy for a startup is a plan to help the business attract and keep customers. It involves deciding how to promote the product or service.

Value Proposition

Value proposition is a clear explanation of why customers should choose your product or service over others.

Channels

Channels are the ways you reach your customers and deliver your product or service to them. Examples are through social media, talking about your start up, and making advertisements.

Customer Segments

Customer segments are the different groups of people or businesses that your product or service is meant to help or serve.

Revenue Streams

Revenue Streams in a are the different ways the company makes money.

Cost Structure

Cost Structure means all the money a business needs to spend to keep running.