Week 9 Flashcards
Bootstrapping
The act of starting a business with little to no money.
Asset Sale
Transfer of ownership of a physical product from owner to buyer.
Usage Fee
Provider will charge customer for use of a service. I.E internet provider.
Subscription Fee
User requires long-term continuous access to product of a company.
Leasing
Customer gains exclusive rights for a limited amount of time in exchange for a fixed fee.
Licensing
Distribution of products considered intellectual property.
Brokerage fee
Company acts as an intermediary to ease communication and transactions between 2 parties. They charge the parties a brokerage fee.
Advertising
Company earns charge a fee to promote others.
Lifetime Value
How much a customer will spend on your product/service in a lifetime.
Transaction Revenue
Revenue earned from one time payment.
Recurring Revenue
consistent on going payments to company for delivery of value proposition or after sales care.
Start up costs
One time fees for starting up company (patent costs, consulting costs, prototype costs)
Costs of Goods
Reoccuring costs that occur when your business is selling its product or service.
Valley of death
the time from when a startup receives funding to when it begins to generate revenues.
Burn Rate
The amount of money one uses every month to keep their business running when they are not making any income.
