Scaling_Business_Strategy Flashcards
(20 cards)
What does it mean to scale an e-commerce business?
Expanding your operations and marketing while maintaining or increasing profitability.
What is the difference between growth and scaling?
Growth requires increasing resources to increase output; scaling increases output faster than input.
What is a key performance indicator (KPI)?
A measurable value that shows how well a business is achieving key objectives.
What is customer acquisition cost (CAC)?
The cost associated with acquiring a new customer through marketing and sales.
What is customer lifetime value (CLV or LTV)?
The total revenue a customer generates throughout their relationship with your brand.
What is the CAC to LTV ratio?
A metric showing if you’re spending profitably; a healthy ratio is typically 3:1 or higher.
What is business automation?
Using technology to handle repetitive tasks and workflows automatically.
What is an SOP (Standard Operating Procedure)?
A documented process explaining how to perform specific tasks consistently.
What is a virtual assistant (VA)?
A remote worker hired to perform tasks like admin, support, or marketing.
What are the benefits of outsourcing?
Lower costs, increased flexibility, and access to global talent.
What is an agency vs. freelancer?
Agencies are teams with structured services; freelancers are individuals offering specialized work.
What is business systemization?
Creating repeatable processes and systems to run the business efficiently.
What are the signs a business is ready to scale?
Consistent revenue, strong cash flow, demand, and operational stability.
What is international expansion?
Expanding sales and operations to new countries or regions.
What is an exit strategy?
A plan for leaving or selling the business profitably.
What is business valuation?
An estimate of what a business is worth, often used for sales or investment.
What are common valuation methods for e-commerce?
SDE, EBITDA multiple, revenue multiple, discounted cash flow (DCF).
What is EBITDA?
Earnings Before Interest, Taxes, Depreciation, and Amortization – a measure of profitability.
What is due diligence in business acquisition?
The process of verifying financial, legal, and operational details before buying a business.
What is a business moat?
A sustainable competitive advantage that protects your business from competitors.
