Business
40 bites tagged Business — interview questions with model answers, and 60-second explainers.
Average Revenue Per User (ARPU)
ARPU is the average revenue each user generates, a pulse check for a subscription business's health. It's used by media and SaaS companies to track if users are becoming more valuable, but it can be skewed by a few high-paying "whales."
Content Marketing: Earn Trust, Not Just Clicks
Content marketing earns trust by giving away valuable information for free. It's used in company blogs or whitepapers to attract an audience by solving their problems, not just pushing a product.
Customer Lifetime Value (LTV): A Customer's Future Net Profit
LTV predicts the total net profit a customer will generate over their entire relationship. It's used to set marketing budgets and prioritize features for high-value users.
Churn Rate: How Fast Your Business is Leaking
Churn rate is your business's leak rate—the percentage of customers lost over a period. It's a vital health metric for subscription services like SaaS or streaming. The footgun?
The Customer Lifecycle: From Prospect to Advocate
The customer lifecycle maps the journey from first contact to loyal advocate. It's used to decide when to send a welcome email (acquisition), a loyalty discount (retention), or a 'we miss you' offer (win-back). The footgun is focusing only on acquisition.
Choosing Your Freelance Business Structure
Choosing a business structure defines your personal liability and tax obligations. This decision is a key step when launching your business, along with registering your name, getting tax IDs, and opening a business bank account.
Beyond Per-Word: A Framework for Setting Freelance Rates
Price your work based on value, not just word count. Rates vary widely by service (editing vs. consulting), genre, and your expertise. This applies when quoting any project.
Invoice: The Official 'Please Pay Me' Document
An invoice is your official request for payment after delivering work. Freelancers and businesses use it to bill clients for services, listing what was done and how much is owed. The footgun is confusing it with a receipt, which confirms payment has been made.
Email Marketing: A Conversation, Not a Megaphone
Email marketing uses email to nurture customer relationships, not just to send ads. It aims to build loyalty, acquire new customers, and drive sales by sending targeted commercial messages. The footgun is treating every email as a hard sales pitch.
Total Addressable Market (TAM): Sizing Your Revenue Ceiling
Total Addressable Market (TAM) is the maximum revenue possible if you captured 100% of the market for your product. It's used to size a market's ultimate potential for investors.
SWOT Analysis: A Structured Brainstorming Framework
SWOT analysis is a 2x2 grid for decision-making, mapping internal factors (Strengths, Weaknesses) against external ones (Opportunities, Threats). Use it for strategic planning or project evaluation.
Competitive Analysis: Sizing Up the Competition
Competitive analysis is systematically assessing rivals' strengths and weaknesses to find your own edge. It helps identify market opportunities and threats before you act. The footgun is focusing only on direct competitors and missing the indirect ones.
Customer Resurrection Rate: Winning Back Lost Customers
Customer Resurrection Rate measures how many "lost" customers you win back. It's crucial for subscription or e-commerce businesses running re-engagement campaigns. The footgun is a vague definition of "churned"—without a clear line, the metric is meaningless.
Customer Lifetime Value (CLV): A Customer's Total Worth
Customer Lifetime Value (CLV) predicts the total net profit a customer will generate, not just a single sale's revenue. It's used to set acquisition budgets and guide retention efforts. The footgun is using revenue instead of profit, leading to overspending.
Customer Retention Rate: Your Leaky Bucket Metric
Customer Retention Rate measures how many customers you keep over a period, showing how "leaky" your business's bucket is. It's vital for subscription services and e-commerce to gauge loyalty and predict revenue. A high overall rate can hide dangerous churn.
Key Performance Indicators (KPIs)
A KPI isn't just any metric; it's a measurable value showing how effectively you're achieving a key business objective. It's used to track things like website uptime or customer acquisition cost.
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