Terms every entrepreneur should know

Flywheel Effect

As small things are added to each other over time, the moment of traction gradually builds up and each such “cycle” spins faster and faster. This phrase was just used by Andrey Khusid, founder of Miro at the Saastr conference.

MLP

Minimum Lovable Product. The minimum set of features in the product is such that users love the product (as opposed to “tolerating” the product as in MVP).

Pareto Principle

20/80. Well everyone knows 🙂

Anti-targets

The idea came from the Stoic philosophers. Instead of focusing on goals, focus on what things to avoid under all circumstances.

Parkinson's Law

The work expands to fill the time allotted for its completion. The term was first coined by Cyril Northcote Parkinson in a humorous essay he wrote for The Economist in 1955.

Viral Loop

When each new client / user brings new clients / users.

Kano Model

A successful MVP should have a little of the core functionality (must have), expected features (should have) and enjoyment (nice to have). Learn more – here.

Price anchoring

In short, to sell a TV for $2000, you need to put a TV for $4000 nearby. Learn more – here.

Positive sum game

A game in which you are in the pluses more than the minuses. A game where everyone wins. Great entrepreneurs are very good at picking positive-sum games.

Cognitive Complexity

The more complex something is written, the less attractive it looks. The ability to “just get right on the shelves” is a decisive factor in getting viewers to watch your video, read your landings, onboardings, etc.