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Amanat Prakash

Building xces • 4d

Day 2 Business Terms 1. CAC (Customer Acquisition Cost) – "If you spend ₹10,000 to get 10 customers, your CAC is ₹1,000. Keep it lower than your Customer Lifetime Value (CLV) to stay profitable!" 2. Gross Margin vs. Net Margin – "Selling a burger for ₹100? If ingredients cost ₹40, gross margin is 60%. After rent & salaries, if ₹20 is left, net margin is 20%." 3. Bootstrapping vs. VC Funding – "Bootstrap = Own money, slow but full control. VC = Big money, fast but shared control. What would you pick?" 4. Scalability in Business – "Netflix scaled globally with the same product. A local bakery? Harder to scale. Think scale when building your startup!" 5. Break-even Point – "Your business is profitable when revenue covers all costs. Example: If rent + salaries = ₹2L/month and you earn ₹2L, you’ve broken even!"

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