Jargon Buster

If you’re a tradesperson, solo founder, or first-time entrepreneur, some of the acronyms and phrases in this guide might feel like another language. Here’s a quick cheat sheet:

• CAC – Customer Acquisition Cost: What it costs you to get a customer. Example: If you spend $100 in ads and get 5 customers, your CAC is $20.

• LTV – Lifetime Value: The average revenue you expect to earn from a single customer over time. If they spend $50/month for 6 months, LTV = $300.

• ROAS – Return on Ad Spend: For every $1 you spend on ads, how much revenue do you get back? A ROAS of 4x means $1 turns into $4.

• SaaS – Software as a Service: Think Netflix, Shopify, or Canva—monthly subscription access to cloud-based tools or platforms.

• AOV – Average Order Value: Your total revenue divided by number of orders. Helps you understand pricing leverage.

• Burn Rate – How quickly you're spending your available cash. High burn with low revenue? Red flag.

• Churn Rate – The percentage of customers who stop buying or cancel subscriptions. Lower is better.

• MVP – Minimum Viable Product: The simplest version of your offer that still solves a real problem.

• KPI – Key Performance Indicator: A measurable stat used to track progress. Could be revenue, conversion rate, etc.

• Conversion Rate – The percentage of users who take a desired action, like buying or signing up.

• CTR (Click-Through Rate) – The ratio of clicks to impressions on an ad or link. High CTR usually means your message is working.

• Landing Page – A single web page designed to convert visitors into leads or buyers. Used in ad campaigns or pre-sales.