1.1 (What is a Business?)

Unit 1

Business

Creates value by providing Goods/Services to customers.

Customer

Consumer is the end user.

Problem-Solution Fit

Business identifies specific customer Problems/Needs and develops a product for it.

Production-Market Fit

>40% of surveyed customers say they’d be “very disapointed” if product disappeared.

Build-Measure-Learn Cycle

Launch, Gather Feedback, Refine.

Value Creation

Product responds to customer Problems/Needs.

Value Capture

Charging above cost of production; generates profit.

MVP (Minimum Viable Product)

Simplest version with core features only.

MMP (Minimum Marketable Product)

Evolved beyond MVP; ready for larger segments.

Revenue

The money received in exchange for goods or services.

Profit

Revenue minus operating costs.