Glossary entry

The sales funnel is a model that depicts the step-by-step journey of a potential customer from the first perception of a product or service to the conclusion of a purchase.

The financial runway refers to the period in which a start-up or company can operate before additional capital is required, based on the current cash reserves and the burn rate.

Return on investment (ROI) is a key performance indicator that measures the ratio of profit or loss from an investment in relation to the amount invested and thus shows the efficiency and profitability of an investment for a start-up or company.

A roadmap is a strategic planning tool that provides a visual timeline of the planned developments, milestones and goals of a company, product or project.

Retention rate is an important metric that measures the percentage of customers who remain loyal to a product or service over a certain period of time, providing insight into the effectiveness of a startup's customer retention strategies.

Profitability is a key performance indicator that measures the ratio of profit to capital employed or turnover in a company and thus shows the ability of a start-up to be financially successful and generate added value.

The purpose of a start-up defines its overarching meaning and the deeper motivations that go beyond pure profit targets and is reflected in the mission, vision and values of the company.

Product-market fit refers to the phase in which a product or service is so well adapted to the needs and preferences of the target market that it is quickly accepted and widely used by customers.

Proof of Concept (PoC) is a crucial step in the early phase of a start-up that aims to demonstrate the practical feasibility and potential of a business idea, product or technology.