Glossary

Session 1 · What Kinds of Businesses Are Out There?

Operating profit
Session 1 · Session 2 · Session 8
Revenue less the cost of goods and the cost of selling. The cleanest read on the core business.
The lessons say: What the main business left
Operating margin
Session 1 · Session 8
Operating profit over revenue. Trillions are hard to feel; ten yen in a hundred is not.
The lessons say: Yen kept per 100 yen sold
Value Propositions
Session 1 · Session 2 · Session 7 · Session 14
The centre block. Not the product name, but what changes for the buyer.
The lessons say: What the money is exchanged for
What the original says · The original describes it as the bundle of products and services that create value for a specific customer segment.
Share / stock
Session 1 · Session 2 · Session 11 · Session 12 · Session 13
Your stake is your shares over the total. Share count and percentage say the same thing two ways.
The lessons say: A slice of the company
Earnings report (tanshin)
Session 1 · Session 2 · Session 8 · Session 14
Listed companies publish a year of revenue and profit. Anyone can read it on the company site.
The lessons say: The annual results filing
Advertising model
Session 1 · Session 2
Users pay nothing; advertisers pay. The size of the audience is what the advertiser buys.
The lessons say: The user is not the payer
Subscription
Session 1
Money arrives every month while the customer keeps using. Revenue is people multiplied by monthly price multiplied by months retained.
The lessons say: Paying every month to keep using
Equity investment
Session 1 · Session 11 · Session 12 · Session 14
Nothing to repay, so no repayment pressure. In exchange, from day one someone else is in the decisions.
The lessons say: No repayment; you hand over part of the company
Net profit
Session 1 · Session 8
After tax. If a dividend is paid, it comes from here.
The lessons say: What is left at the bottom
Licensing
Session 1
You do not make the product. Another company uses your character and pays a fee on what it sells.
The lessons say: Lending a character for a fee

Session 2 · Putting Your Idea on One Page

Operating profit
Session 1 · Session 2 · Session 8
Revenue less the cost of goods and the cost of selling. The cleanest read on the core business.
The lessons say: What the main business left
Value Propositions
Session 1 · Session 2 · Session 7 · Session 14
The centre block. Not the product name, but what changes for the buyer.
The lessons say: What the money is exchanged for
What the original says · The original describes it as the bundle of products and services that create value for a specific customer segment.
Share / stock
Session 1 · Session 2 · Session 11 · Session 12 · Session 13
Your stake is your shares over the total. Share count and percentage say the same thing two ways.
The lessons say: A slice of the company
Earnings report (tanshin)
Session 1 · Session 2 · Session 8 · Session 14
Listed companies publish a year of revenue and profit. Anyone can read it on the company site.
The lessons say: The annual results filing
Cost of goods
Session 2 · Session 7 · Session 8 · Session 14
What the sold item itself cost. Rent and wages come out of what is left after it.
The lessons say: What the goods themselves cost
Advertising model
Session 1 · Session 2
Users pay nothing; advertisers pay. The size of the audience is what the advertiser buys.
The lessons say: The user is not the payer
Customer Segments
Session 2 · Session 3 · Session 14
The right-hand block. Writing “everyone” here blurs the other eight.
The lessons say: Who buys
What the original says · The original describes it as defining the groups of people or organizations the enterprise aims to reach and serve.
Customer Relationships
Session 2
One-off, or coming back. Self-service is a choice, not a shortfall.
The lessons say: How you stay with the buyer
What the original says · The original describes the types of relationships a company establishes with specific customer segments.
Cost Structure
Session 2 · Session 8
The bottom row. Filings give totals, not the breakdown — so this block often stays blank.
The lessons say: Everything that goes out
What the original says · The original describes all costs incurred to operate a business model.
Revenue Streams
Session 2
Not everyone in customer segments appears here. Free users are a segment but not a revenue stream.
The lessons say: Where the money comes in
What the original says · The original describes the cash a company generates from each customer segment.
Key Activities
Session 2
The things that, if you stopped doing them, would stop the business.
The lessons say: What you do
What the original says · The original describes the most important things a company must do to make its business model work.
Channels
Session 2
Shop, web, word of mouth. Getting known and getting bought are separate, and both sit here.
The lessons say: How it gets known and delivered
What the original says · The original describes how a company communicates with and reaches its customer segments to deliver a value proposition.
Key Partners
Session 2 · Session 10
UNIQLO owns no factories and is still a clothing maker. Being able to name partners is the point.
The lessons say: Who helps
What the original says · The original describes the network of suppliers and partners that make the business model work.
Business Model Canvas
Session 2 · Session 13 · Session 14
A one-page layout of nine blocks. Fitting a business on one sheet makes the blanks visible.
The lessons say: Nine blocks on one sheet
What the original says · From Osterwalder and Pigneur (2010). The original has nine blocks; the five groups used in this course are not part of it.
Persona
Session 2 · Session 3
Not just age and job, but the day and the moment of difficulty. It decides who you go and ask.
The lessons say: One named buyer, written out
What the original says · From Alan Cooper. It comes from a different lineage than the canvas — do not merge the two.
Key Resources
Session 2 · Session 10
Place, tools, money, people. Before you start, this is mostly blank — and that is fine.
The lessons say: What you have
What the original says · The original describes the most important assets required to make a business model work.

Session 3 · Does Anyone Actually Want It?

Hypothetical bias
Session 3
Stated willingness to pay runs about 21% above what people actually pay. Not lying — the future is not yet real.
The lessons say: Stated prices come out too high
What the original says · Schmidt and Bijmolt (2020), a meta-analysis of 115 effect sizes from 77 studies in 47 papers.
Customer Development
Session 3
Check before you build, not after. The fourteen sessions of this course follow this shape.
The lessons say: Checking the buyer, step by step
What the original says · Steve Blank's line: there are no facts inside the building — get out.
Customer Segments
Session 2 · Session 3 · Session 14
The right-hand block. Writing “everyone” here blurs the other eight.
The lessons say: Who buys
What the original says · The original describes it as defining the groups of people or organizations the enterprise aims to reach and serve.
Persona
Session 2 · Session 3
Not just age and job, but the day and the moment of difficulty. It decides who you go and ask.
The lessons say: One named buyer, written out
What the original says · From Alan Cooper. It comes from a different lineage than the canvas — do not merge the two.

Session 4 · How Many Buyers Are There?

TAM / SAM / SOM
Session 4 · Session 14
Three nested sizes: the whole market, what you can reach, and what you can take in year one.
The lessons say: Whole market, reachable, year one

Session 5 · Check It, Then Rebuild It

Denominator
Session 5 · Session 8 · Session 9 · Session 12
Twenty percent of page views is not twenty percent of people who heard of you. Check what it is out of.
The lessons say: What the percentage is out of

Session 6 · Why Would You Win?

Competitor
Session 6 · Session 14
Not only the same trade. Buyers compare ways of settling a problem: the same trade, a different method, and doing nothing — the last being the strongest and the hardest to see.
The lessons say: Whoever else settles the same errand

Session 7 · What Do You Charge?

Value Propositions
Session 1 · Session 2 · Session 7 · Session 14
The centre block. Not the product name, but what changes for the buyer.
The lessons say: What the money is exchanged for
What the original says · The original describes it as the bundle of products and services that create value for a specific customer segment.
Cost of goods
Session 2 · Session 7 · Session 8 · Session 14
What the sold item itself cost. Rent and wages come out of what is left after it.
The lessons say: What the goods themselves cost
The floor and the ceiling
Session 7
Below the floor you lose money; above the ceiling nobody buys. If the floor is above the ceiling, price is not the problem.

Session 8 · Does It Really Make Money?

Operating profit
Session 1 · Session 2 · Session 8
Revenue less the cost of goods and the cost of selling. The cleanest read on the core business.
The lessons say: What the main business left
Operating margin
Session 1 · Session 8
Operating profit over revenue. Trillions are hard to feel; ten yen in a hundred is not.
The lessons say: Yen kept per 100 yen sold
Ordinary profit
Session 8
Operating profit plus or minus interest and currency effects. The steps do not always go down.
The lessons say: After the money side
Earnings report (tanshin)
Session 1 · Session 2 · Session 8 · Session 14
Listed companies publish a year of revenue and profit. Anyone can read it on the company site.
The lessons say: The annual results filing
Cost of goods
Session 2 · Session 7 · Session 8 · Session 14
What the sold item itself cost. Rent and wages come out of what is left after it.
The lessons say: What the goods themselves cost
Impairment loss
Session 8
Cutting the book value of an asset that no longer earns its price. No cash leaves, but profit falls.
The lessons say: Writing an asset down
Cost Structure
Session 2 · Session 8
The bottom row. Filings give totals, not the breakdown — so this block often stays blank.
The lessons say: Everything that goes out
What the original says · The original describes all costs incurred to operate a business model.
Fixed costs
Session 8 · Session 10
Rent, connectivity, salaries. They arrive in a month with no customers at all.
The lessons say: Costs that come whether you sell or not
Income statement
Session 8
Revenue less costs, one named step at a time. Reading down shows which step the money fell at.
The lessons say: Profit, step by step down the page
Break-even point
Session 8 · Session 10 · Session 14
Fixed costs divided by what one sale leaves you. The arithmetic is easy; collecting the inputs is not.
The lessons say: How many sales to stop losing money
Net profit
Session 1 · Session 8
After tax. If a dividend is paid, it comes from here.
The lessons say: What is left at the bottom
Extraordinary loss
Session 8
Closing a plant, writing down an asset. Not yearly, so it is read apart from the core business.
The lessons say: A one-off, large loss
Denominator
Session 5 · Session 8 · Session 9 · Session 12
Twenty percent of page views is not twenty percent of people who heard of you. Check what it is out of.
The lessons say: What the percentage is out of
Variable costs
Session 8 · Session 10
Materials, stock, per-sale fees. Revenue less variable cost is what one sale leaves you.
The lessons say: Costs that arrive with each sale
Consolidated / parent-only
Session 8
The same company in the same year looks different depending on whether subsidiaries are counted.
The lessons say: The group, or the company alone

Session 9 · Which Numbers Should You Watch?

KPI
Session 9
Not any measurable number: one you can move, and moving it changes the outcome.
The lessons say: The number you watch
KPI tree
Session 9 · Session 14
Not a list of metrics: revenue broken into multiplied branches, so leverage is visible.
The lessons say: Revenue split into a tree
Denominator
Session 5 · Session 8 · Session 9 · Session 12
Twenty percent of page views is not twenty percent of people who heard of you. Check what it is out of.
The lessons say: What the percentage is out of

Session 10 · What Does It Cost to Build?

Fixed costs
Session 8 · Session 10
Rent, connectivity, salaries. They arrive in a month with no customers at all.
The lessons say: Costs that come whether you sell or not
Break-even point
Session 8 · Session 10 · Session 14
Fixed costs divided by what one sale leaves you. The arithmetic is easy; collecting the inputs is not.
The lessons say: How many sales to stop losing money
Japan Finance Corporation
Session 10 · Session 11
Set up to lend where private banks will not. It runs startup schemes and publishes the survey used in Sessions 10 and 11.
The lessons say: The government-owned lender
Key Partners
Session 2 · Session 10
UNIQLO owns no factories and is still a clothing maker. Being able to name partners is the point.
The lessons say: Who helps
What the original says · The original describes the network of suppliers and partners that make the business model work.
Fast, likely, slow
Session 10 · Session 11
Not one number but a range. The slow case is the useful one — and it needs named causes, not a blanket multiplier.
Variable costs
Session 8 · Session 10
Materials, stock, per-sale fees. Revenue less variable cost is what one sale leaves you.
The lessons say: Costs that arrive with each sale
Key Resources
Session 2 · Session 10
Place, tools, money, people. Before you start, this is mostly blank — and that is fine.
The lessons say: What you have
What the original says · The original describes the most important assets required to make a business model work.

Session 11 · How Do You Raise the Money?

Share / stock
Session 1 · Session 2 · Session 11 · Session 12 · Session 13
Your stake is your shares over the total. Share count and percentage say the same thing two ways.
The lessons say: A slice of the company
Shareholder
Session 11 · Session 12 · Session 13
Three rights: dividends, residual assets, and voting. Only the third takes effect from day one.
The lessons say: Whoever holds the shares
Shareholders' meeting
Session 11 · Session 12 · Session 13
Decisions about the shape of the company itself — not the day-to-day, which belongs to the board.
The lessons say: Where the shareholders decide
Voting rights
Session 11 · Session 12
One share, one vote. Two lines matter: a simple majority and two-thirds.
The lessons say: The right to vote on big decisions
Personal guarantee
Session 11
The heaviest term when borrowing. It reaches past limited liability to personal assets.
The lessons say: The founder personally backs the loan
Own funds
Session 11 · Session 14
Not only savings: tools already bought, and money given without a repayment promise, count too.
The lessons say: The money you bring yourself
Equity investment
Session 1 · Session 11 · Session 12 · Session 14
Nothing to repay, so no repayment pressure. In exchange, from day one someone else is in the decisions.
The lessons say: No repayment; you hand over part of the company
Credit Guarantee Corporation
Session 11
It makes lending possible without a track record. If it pays, your debt does not vanish — the creditor changes.
The lessons say: The public body that pays if you cannot
Business plan (for financing)
Session 11
The forms differ; the questions do not. They are the blocks this course has been filling since Session 1.
The lessons say: The plan you submit to borrow
Japan Finance Corporation
Session 10 · Session 11
Set up to lend where private banks will not. It runs startup schemes and publishes the survey used in Sessions 10 and 11.
The lessons say: The government-owned lender
Dividend
Session 11 · Session 12
Not automatic. Early companies rarely pay; investors are usually after the value of the stake instead.
The lessons say: Sharing profit with shareholders
Fast, likely, slow
Session 10 · Session 11
Not one number but a range. The slow case is the useful one — and it needs named causes, not a blanket multiplier.
Limited liability
Session 11 · Session 12
Shareholders are not liable beyond their investment — unless the founder personally guaranteed a loan.
The lessons say: You lose only what you put in
Loan
Session 11
You keep the company. You repay on the date whether or not you are profitable.
The lessons say: Borrow, and pay back

Session 12 · What Changes When You Take Investment?

Share / stock
Session 1 · Session 2 · Session 11 · Session 12 · Session 13
Your stake is your shares over the total. Share count and percentage say the same thing two ways.
The lessons say: A slice of the company
Shareholder
Session 11 · Session 12 · Session 13
Three rights: dividends, residual assets, and voting. Only the third takes effect from day one.
The lessons say: Whoever holds the shares
Shareholders' meeting
Session 11 · Session 12 · Session 13
Decisions about the shape of the company itself — not the day-to-day, which belongs to the board.
The lessons say: Where the shareholders decide
Voting rights
Session 11 · Session 12
One share, one vote. Two lines matter: a simple majority and two-thirds.
The lessons say: The right to vote on big decisions
Dilution
Session 12
Issue new shares and your count stays but the total grows. Not bad in itself — a smaller slice of a larger pie.
The lessons say: Your stake falls without selling anything
Equity investment
Session 1 · Session 11 · Session 12 · Session 14
Nothing to repay, so no repayment pressure. In exchange, from day one someone else is in the decisions.
The lessons say: No repayment; you hand over part of the company
Separation of ownership and control
Session 12
Shareholders choose directors; directors run the company. Taking investment does not by itself remove you.
The lessons say: Owner and operator need not be the same
Board of directors
Session 12 · Session 13
What to build, what to charge, whom to hire. Being a shareholder and being a director are different things.
The lessons say: Where the running of the company is decided
Dividend
Session 11 · Session 12
Not automatic. Early companies rarely pay; investors are usually after the value of the stake instead.
The lessons say: Sharing profit with shareholders
Denominator
Session 5 · Session 8 · Session 9 · Session 12
Twenty percent of page views is not twenty percent of people who heard of you. Check what it is out of.
The lessons say: What the percentage is out of
Limited liability
Session 11 · Session 12
Shareholders are not liable beyond their investment — unless the founder personally guaranteed a loan.
The lessons say: You lose only what you put in

Session 13 · Who Does What, and Building the Pitch

Share / stock
Session 1 · Session 2 · Session 11 · Session 12 · Session 13
Your stake is your shares over the total. Share count and percentage say the same thing two ways.
The lessons say: A slice of the company
Shareholder
Session 11 · Session 12 · Session 13
Three rights: dividends, residual assets, and voting. Only the third takes effect from day one.
The lessons say: Whoever holds the shares
Shareholders' meeting
Session 11 · Session 12 · Session 13
Decisions about the shape of the company itself — not the day-to-day, which belongs to the board.
The lessons say: Where the shareholders decide
Agree how you will decide
Session 13
Settle the rule before you disagree, or you will disagree about the rule too.
Board of directors
Session 12 · Session 13
What to build, what to charge, whom to hire. Being a shareholder and being a director are different things.
The lessons say: Where the running of the company is decided
Business Model Canvas
Session 2 · Session 13 · Session 14
A one-page layout of nine blocks. Fitting a business on one sheet makes the blanks visible.
The lessons say: Nine blocks on one sheet
What the original says · From Osterwalder and Pigneur (2010). The original has nine blocks; the five groups used in this course are not part of it.
Pitch
Session 13 · Session 14
Seven slides, seven minutes. The limit forces the choice of what matters most.
The lessons say: A short case, put to a decision

Session 14 · The Funding Pitch

Value Propositions
Session 1 · Session 2 · Session 7 · Session 14
The centre block. Not the product name, but what changes for the buyer.
The lessons say: What the money is exchanged for
What the original says · The original describes it as the bundle of products and services that create value for a specific customer segment.
Competitor
Session 6 · Session 14
Not only the same trade. Buyers compare ways of settling a problem: the same trade, a different method, and doing nothing — the last being the strongest and the hardest to see.
The lessons say: Whoever else settles the same errand
KPI tree
Session 9 · Session 14
Not a list of metrics: revenue broken into multiplied branches, so leverage is visible.
The lessons say: Revenue split into a tree
Earnings report (tanshin)
Session 1 · Session 2 · Session 8 · Session 14
Listed companies publish a year of revenue and profit. Anyone can read it on the company site.
The lessons say: The annual results filing
Cost of goods
Session 2 · Session 7 · Session 8 · Session 14
What the sold item itself cost. Rent and wages come out of what is left after it.
The lessons say: What the goods themselves cost
Customer Segments
Session 2 · Session 3 · Session 14
The right-hand block. Writing “everyone” here blurs the other eight.
The lessons say: Who buys
What the original says · The original describes it as defining the groups of people or organizations the enterprise aims to reach and serve.
Own funds
Session 11 · Session 14
Not only savings: tools already bought, and money given without a repayment promise, count too.
The lessons say: The money you bring yourself
Equity investment
Session 1 · Session 11 · Session 12 · Session 14
Nothing to repay, so no repayment pressure. In exchange, from day one someone else is in the decisions.
The lessons say: No repayment; you hand over part of the company
Break-even point
Session 8 · Session 10 · Session 14
Fixed costs divided by what one sale leaves you. The arithmetic is easy; collecting the inputs is not.
The lessons say: How many sales to stop losing money
TAM / SAM / SOM
Session 4 · Session 14
Three nested sizes: the whole market, what you can reach, and what you can take in year one.
The lessons say: Whole market, reachable, year one
Business Model Canvas
Session 2 · Session 13 · Session 14
A one-page layout of nine blocks. Fitting a business on one sheet makes the blanks visible.
The lessons say: Nine blocks on one sheet
What the original says · From Osterwalder and Pigneur (2010). The original has nine blocks; the five groups used in this course are not part of it.
Pitch
Session 13 · Session 14
Seven slides, seven minutes. The limit forces the choice of what matters most.
The lessons say: A short case, put to a decision