Disciplined Entrepreneurship, 2nd Edition

GLOSSARY

adjacent market

A new market that you can easily enter from the market you are currently in; requires its own Persona.

Beachhead Market

The first market your business sells in.

Business

A viable organization created to achieve a goal that does not depend on outside charitable contributions.

cash‐flow positive

When the cash received by the company exceeds the cash that is paid out in a particular month.

Competitive Position

How well you meet your customer's top two priorities compared to any existing or likely competition, including the status quo for the customer.

Core

The central element to your business that gives you a sustained advantage over your competitors.

Cost of Customer Acquisition (CoCA)

The marginal amount of costs your business will incur to acquire one more average new customer. This involves only the marketing and sales costs and not the product and development or general and administrative costs. Unfortunately, there is not a standard or Generally Accepted Accounting Principle with regard to this, so whenever you hear the term (often expressed as CAC, or Customer Acquisition Cost), it is important to understand what the assumptions are in that business's calculation. This book gives you an explicit definition in Step 19 but others have other interpretations. If you understand the concepts and calculations in this book, you will be able to adjust to other definitions, but make sure you are explicit about assumptions and calculations.

follow‐on ...