?? 18 Startup Acronyms You Need to Know ??

Startup terms and acronyms can be confusing to a native English speaker, never mind a non native.

There are so many terms to learn when you enter the world of startups, and even if you are an experienced entrepreneur, it is a constant learning curve. This is because new terms are constantly popping up, adding to an endless list of terms that you need to keep up to date with.

Taking this into account, I have put together a list of common acronyms that you are sure to run into on your entrepreneurial journey. Some you will almost certainly already know.

I haven't listed every single startup acronym, as you'd be here all day reading them all. I've just listed the ones that are essential. Please feel free to drop any others you consider essential in the comments!

?? MVP: Minimum Viable Product

A process that results in building an early version of a product that has limited and basic features. The goal of the MVP is to provide enough value to appeal to customers, and then collect feedback to refine the product.

?? EVP: Exceptional Viable Product

The goal is to develop the finest version of your product on first release, that will dazzle your customers. This would only apply in exceptional circumstances, such as in a highly competitive space that require you to have unique and outstanding features not current available on the market.

?? UI: User Interface

This refers to the aesthetic elements of a product, such as the way an APP looks.

?? UX: User Experience

This refers to the experience that a user has with the product, such as what steps they take to reach a checkout and what they have to do to get there.

?? GTM: Go To Market

This is a marketing strategy or product that details how a startup intends to enter the market with their product.

?? CRM: Customer Relationship Management

This is the software used to track relationships with your customers, such as Salesforce.

?? MRR: Monthly Recurring Revenue

This is your recurring revenue in a monthly amount. Worked out by dividing the number of monthly subscribers by average revenue per user. This is a short term key performance indicator (KPI).

?? ARR: Annual Recurring Revenue

Same as MRR but on an annual basis. Used in conjunction with MRR, and is a good indictor for long-term growth and to visualise the size of your business.

?? YoY: Year over Year

Self-explanatory. Can be applied to other time periods such as MoM (Month over Month).

?? CAC: Customer Acquisition Cost

This is the cost of acquiring a customer, taking into account sales, marketing and other related costs. Essential for a startup to calculate what resources it must invest in acquiring customers. The CAC calculation will vary depending on the customers, tactics and other inclusive and exclusive factors to the business.

?? LTV: Lifetime Value (Customer)

Used to identify how much business a startup will generate from a single customer. A good measure of profitability a business will reasonably generate over a longer period of time.

?? VC: Venture Capitalists

These are investors that focus on investing in startups in the growth stage.

?? FFF: Friends, Family and Fools

This is the first round of funding where friends and family invest to get the business up and running. The fools part is obviously a joke, as you have a great business idea and you are going to succeed! ;)

?? IPO: Initial Public Offering

When a private/unlisted company decides to raise funds through the sale of shares for the first time on the public market. The shares are created and underwritten by an intermediary.

?? DPO: Direct Public Offering

A cheaper alternative to a IPO where an underwriter is not used. Usually used by more famous startups, such as Spotify.

?? B2B: Business to Business

When a startup focuses on dealing with other businesses directly.

?? B2C: Business to Consumer

When a startup focuses on dealing with customers directly.

?? FMA: First Mover's Advantage

This is the advantage a startup can gain by being the first product in its own product category. For example, Amazon, who took full advantage of their FMA, or Slack, who had a FMA but ended up losing out to Microsoft Teams.

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I hope that this list will have taught you a few new startup acronyms, or refreshed your mind on the ones you already knew.

Please feel free to save the post for future use.

I will update the list as and when more interesting acronyms find their way into the ecosystem!

?? FEEL FREE TO CONNECT |?Will Gayle

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