Business

Question 1

What is Bootstrapping in business

Answer 1

Bootstrapping in business refers to building and growing a company using only personal finances or internal cash flow, without taking outside investment like venture capital or loans.

Question 2

What’s ARR

Answer 2

ARR stands for Annual Recurring Revenue. It’s a key metric used by SaaS (and other subscription-based) businesses to measure predictable, recurring revenue over a one-year period.

Simple Definition:

ARR = Total value of all active subscriptions normalized to a yearly rate.

Example:

If a customer pays $100/month, that’s $1,200 ARR.

If you have 10 such customers, your ARR is $12,000.

Why ARR matters:

Tracks business growth and financial health

Helps forecast future revenue

Attracts investors by showing predictable income

Question 3

What’s Saas

Answer 3

SaaS stands for Software as a Service. It’s a way of delivering software over the internet rather than installing it locally on your computer or server.

Instead of buying a software license and installing it, you subscribe to a SaaS product and access it via a web browser. The software is hosted, maintained, and updated by the provider.

Examples of SaaS products:

Google Workspace (Docs, Sheets, Gmail)

Microsoft 365 (Outlook, Word, Excel online)

Notion, Trello, Slack, Zoom