Basic Startup Lingo!
Hey to the one who started to read this ! In this article, I want to introduce you to some basic Entrepreneurial Terms or simply just startup dictionary.
Entrepreneur : A person who organizes, operates and assume risk for a business venture.
Intrapreneur : An Intrapreneur is one who takes on entrepreneur-like ventures within a large corporate environment.
Entrepreneurship : Identifying a problem and providing a solution.
Business Plan : Set of documents prepared by a firm to summarize its operational and financial objectives in near future.
Investor : A individual who commits money to investment product with expectation of financial returns.
Benchmark : A point of reference that allows you to determine whether your business is successful.
Venture Capital (VC) : form of financing for a company in which the business gives up partial ownership and control of the business in exchange for capital over a limited time frame, usually 3–5 years. Investments typically range from $500,000 to $5 million., although there are occasionally VC investments for as low as $50,000 or as high as $20 million.
Venture Firm : A government, semi government or private firm that provides startups or growth equity capital and/or loan capital to promising venture for returns that are higher than the market interest rates.
Enterprise Zones : Specially designated areas of community that provide tax and benefits to new business locating there and grants for new product development.
Marketplace Differentiation : The ability to set your business and its products/services apart from that of your competition.
Accredited Investor : It is a term defined by various countries’ securities laws that delineates investors permitted to invest in certain types of higher risk investments including seed money, limited partnerships, hedge funds, private placements, and angel investor networks.
Due Diligence : Investigation of a business or person prior to signing a contract, or an act with a certain standard of care.
Startup Resources : Resources an entrepreneur needs for starting a new business including capital, management expertise, legal and financial advice and most importantly customers.
Board of Advisers : A board which gives guidance and advice to entrepreneur.
Foundation Skills : Mathematical, communication and decision making skills an entrepreneur uses in the business.
Free Enterprise System : An economic system where few restrictions are placed on business activities and ownership.
Mission Statement : One or two statements describing why your company exists, whom does it serve, its goals and philosophy.
Factors of Production : Resources of land, labor, capital and entrepreneurship used to produce goods and services.
Revenue : The amount of money a business receives during a certain period of time.
Dilution : The percentage of ownership lost by the founders or the co-founders when the company gets new investors.
Capital : The fund used to start or grow business from sources other than business itself.
Angel Investor : Individuals who invest in startups and early stage companies using a high-risk, high-return matrix.
Bootstrapping : Using personal savings to find your venture.
Profit margins : The amount of profit a business keeps in earnings.
Term sheet : A proposed agreement between a business and the investment company which outlines the condition of the investment.
Marketing : The process of researching, promoting, selling and distributing a product or service. Marketing covers a broad range of practices, including advertising, publicity, promotion, pricing, and overall packaging of the goods or services.
Public Relations : The deliberate promotion of a specific image for a business. Often confused with publicity which is simply the materials used in a specific part of a public relations effort.
Hope you learned some new lingos!