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Acronym Soup – B

Bottoms up forecasting - A revenue forecast based on price, number of units, sales cycle, number of leads, conversion rate, etc. This is the way you should forecast your revenue as opposed to Top-down forecasting which is… "If I just get 2% of a $100M market, I’ll do $2M this year…" "Boil the ocean" - A term used to describe the impossible task of trying to take on too many markets with too many features. Just pick a targeted market for your beachhead and own it. Don't try to "boil...

November 30, 1999 by ATDC

Bottoms up forecasting – A revenue
forecast based on price, number of units, sales cycle, number of leads,
conversion rate, etc.  This is the way you should forecast your revenue as
opposed to Top-down forecasting which is… "If I just get 2% of a $100M market,
I’ll do $2M this year…"

"Boil the ocean" – A term used to
describe the impossible task of trying to take on too many markets with too many
features.  Just pick a targeted market for your beachhead and own it.  Don’t try
to "boil the ocean."

Burn rate – The amount of cash you
are spending (burning) each month.  You use this figure to calculate how much
money you need to survive until the next cash infusion or until your "Fume date"
(the date you run out of money…)

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