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Monthly recurring revenue, or MRR, is the centerpiece of most subscription-based businesses. It represents the predictable subscription income a company earns, normalized into a mo...
Customer acquisition cost, or CAC, captures how much a company spends on average to win a new customer. It is computed by dividing total sales and marketing spend by the number of...
Activation rate is the share of new users who complete the action that signals they have experienced the product's first meaningful value, such as finishing onboarding, creating a...
Runway is the most honest measure of how long a startup can keep operating at its current burn rate before running out of cash. A team growing quickly with negative cash flow may l...
Sales cycle is the time from a first qualified contact to a closed deal, and it has a direct effect on cash flow, forecasting, and the shape of the go-to-market motion. A short cyc...
The north-star metric is the single number that captures the core customer value a product delivers, and around which sustainable growth can be organized. Unlike revenue or user co...