Glossary
Words you will meet while you grow
Short definitions for startup, finance and growth. Each one says what it means, why it matters, and a real example.
18 terms come with their formula. Terms with a formula let you calculate with your own numbers.
Formula
Example
You spend 10,000 TRY and the ads are tied to 40,000 TRY of sales. ROAS is 4.
Startup
7MVP
A minimum viable product is the smallest version of an offer that a real customer can use and react to.
Example: A landing page that takes paid pre-orders, before the full app exists.
Product-market fit
People want what you sell enough to come back, pay, and tell others, without you pushing every sale.
Example: Customers renew without a discount and ask when the next feature ships.
ICP
The ideal customer profile is a specific kind of buyer: their job, company size, problem, and budget.
Example: Independent clinics in Turkey with 2–10 staff who still book patients on WhatsApp.
Go-to-market
The plan for who you sell to, where you find them, what you say, and how they pay.
Example: Founders in a niche community, a short demo, then a monthly plan.
Pivot
A deliberate change of customer, problem, or offer after evidence, not after a bad week.
Example: You stop selling to agencies and sell the same tool to in-house marketing teams.
Pre-seed and seed
Early funding to prove the offer. Pre-seed pays for the first tests. Seed pays to repeat a sale that already happened.
Example: Friends fund the prototype. A seed round funds hiring after 20 paying customers.
Churn
The share of customers or revenue you lose in a period. Logo churn counts people. Revenue churn counts money.
Calculate it nowFormula
Churn (%)=Customers lost in the periodCustomers at the start of the period× 100
Finance
10MRR
Monthly recurring revenue is the subscription money you expect this month, normalised to one month.
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MRR=Paying customers×Average monthly priceARR
Annual recurring revenue is MRR times 12. It is a run-rate, not cash already collected.
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ARR=MRR×12Burn rate
How much cash the company spends beyond what it collects, usually per month.
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Monthly burn=Cash spent−Cash collectedRunway
How many months the cash lasts if burn stays like this. Cash divided by monthly burn.
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Runway (months)=Cash in the bankMonthly burnGross margin
What remains from revenue after the direct cost of delivering the product, as a percentage.
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Gross margin (%)=Revenue−Direct costsRevenue× 100CAC
Customer acquisition cost is what you spend on sales and ads to win one paying customer.
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CAC=Sales and ad spendNew paying customersLTV
Lifetime value is the gross profit you expect from one customer before they leave.
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LTV=Monthly revenue per customer×Gross margin×Months they stayPayback period
How many months of gross profit it takes to earn back the cost of winning that customer.
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Payback (months)=CACMonthly gross profit per customerUnit economics
Whether one customer, one order, or one seat makes money after its direct costs and acquisition cost.
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Profit per unit=Gross profit per unit−Acquisition cost per unitCash flow
Cash that actually enters and leaves the bank. Profit on paper can still leave you unable to pay salaries.
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Net cash flow=Cash in−Cash out
Growth
7Conversion rate
The share of people who take the step you asked for: visit to lead, lead to customer, or trial to paid.
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Conversion (%)=People who took the stepPeople who reached the step× 100Funnel
The steps from stranger to customer, and how many people you lose at each step.
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Step conversion (%)=People at the next stepPeople at this step× 100ROAS
Return on ad spend is revenue attributed to ads divided by what the ads cost.
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ROAS=Revenue attributed to adsAd spendCTR
Click-through rate is clicks divided by times the ad or link was shown.
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CTR (%)=ClicksImpressions× 100CPA
Cost per action is what you pay for one result you defined: a lead, a purchase, or a trial.
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CPA=Ad spendResultsRetention
The share of customers who are still active or still paying after a period.
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Retention (%)=Customers still paying at the endCustomers who started× 100Activation
The first moment a new user gets the value you promised, not merely the moment they sign up.
Calculate it nowFormula
Activation (%)=New users who reached first valueNew sign-ups× 100
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