A set of beliefs and impressions held by customers towards the company and its products and services. These impressions are formed through their previous experiences and interactions with the brand, prior perceptions retained based on advertisements or others' experiences with the brand, and their understanding of your company's vision and mission.
The level of sales at which total costs are equal to total revenue, resulting in neither profit nor loss.
A feedback loop that displays the process entrepreneurs use to continuously improve their products. The model illustrates how startups turn ideas into products, evaluate customer reactions, decide whether to pivot or persevere, and then repeat the process.
The rate at which a recently established company utilizes its venture capital to cover operating expenses before achieving positive cash flow from operations, indicating a negative cash flow situation. Typically, the burn rate is measured in terms of cash expended per month. Should the burn rate exceed initial projections or if revenue falls short of expectations, the customary response is to take action to lower it, usually through downsizing the workforce.
