The popular television show Shark Tank India 3 is going to start from 22nd January and the audience is excited to witness the wonderful show and the talented entrepreneurs. This time, new sharks are going to join the show and the promos of the show are going viral online. There are a lot of fans who watch the show but they don’t understand the heavy terms that are used in startups. Ahead of the show, we are going to tell you some terms of startups which will help you understand the startups.
Know about the terms of startups to understand Shark Tank India 3
There are more than 80 terms to understand everything about a startup business and these terms will increase your knowledge as well. Check them out below;
1. Startup Idea
The concept of what startup you intend to launch is known as a startup idea. There isn’t much information inside this, just a concept.
2. Prototype
A sample product, known as a prototype, is created before mass production of numerous products. Let us tell you that while this sample product is comparable to the real product, it does not function precisely the same.
3. Minimum Viable Product (MVP)
When a product is ready to go to market after making essential adjustments to the prototype, it is referred to as the Minimum Viable Product or MVP. This product performs precisely like the original product.
4. Business Plan
This is the comprehensive plan for any firm. How will the business grow gradually, where will the income come from, how much will be spent, and how will the business be expanded?
5. Business Model
This explains how and how much money will be earned, or how revenue will be generated. It includes comprehensive financial information and explains how to generate money.
6. Pitches
Pitching is the process of presenting your startup idea to potential investors. In Shark Tank India, several startups pitch their ideas to the sharks or investors.
7. Equity
Equity refers to a stake in a business. Giving the investor 10% equity means he becomes the owner of 10%.
8. Debt
Debt refers to a loan taken out to conduct a business. Interest must be paid on this.
9. Bootstrapped Startup
A bootstrapped startup is one in which the founder puts all of his or her own money in the business with no outside investors. The money invested may have been borrowed from someone else or obtained through a bank loan.
10. Valuation
This represents the company’s value. If the investor invests Rs 1 crore for 10% equity, the valuation rises to Rs 10 crore. This refers to how much money the business can be sold for at any one time.
11. Entrepreneur
Those who create their firm and face the risk of everything, from management to profit and loss, are called entrepreneurs.
12. Crowdfunding
Crowdfunding is the process of soliciting funds from individuals to create or market a product.
13. Proof of Concept
This is proof of concept. Investors require proof of concept when making a company investment. That indicates it’s exactly like a prototype.
14. B2B Businesses
This category includes startups whose customers are businesses. An automobile manufacturer is a customer of a tire manufacturer.
15. B2C Business
It is also known as D to C business. In this term, businesses or startups sell their products or services directly to consumers.
16. Pre Revenue
Startup pre-revenue occurs when no one is earning and investors predict how much the startup will make.
17. Gross Margin
Gross margin is the difference between the product’s cost (raw materials, labour, and manufacture) and its selling price.
18. Net Margin / Profit
The net margin is calculated by deducting the product’s marketing, distribution, and discount expenses from its gross margin.
19. Overhead Charge
This comprises non-product-related expenses such as warehouse or office rent, insurance, and legal fees.
20. Cash Flow Statement
Everything is written here, including where the money comes from and where it goes, as well as how much is spent.
21. Incubators
This is a type of organization that assists new startups in the early phases of their operations.
22. Accelerators
These are also entities that seek to accelerate the growth of startups once they have launched.
23. Angel Investor
Angel investors are family members or friends of a startup entrepreneur who invest money.
24. Venture Capital Firm
These companies first solicit funds from individuals, then invest that money in startups and return it to customers after generating profits.
25. Scalability
You could have heard this word on Shark Tank. This indicates how likely a company is to expand in the future.
26. Business Agreement
This is an agreement that specifies what and how many products a business will provide to a consumer and at what price.
27. Term Sheet
A term sheet comprising all relevant information, including product terms and conditions, is frequently signed before a commercial deal.
28. Customer Acquisition Cost
CAC refers to the average amount of money a startup must spend to acquire a new customer.
29. Total Addressable Market
TAM refers to the estimated market size of your product-service, or business.
30. Financial Projections
This is the startup’s future financial plan for how it will cover its expenses and generate profits.
31. Patent
A patent entails putting your name on a product; no one can manufacture such a product without your permission.
32. Trademark
A trademark is a distinguishing characteristic of a product, such as Apple’s sliced apple. Once a trademark is created, it cannot be copied.
33. Copyright
It is comparable to patents and trademarks but for content. Copyrights exist in books, songs, films, and other media.
34. Royalty
If you have a copyright or a patent on something and someone else manufactures and sells it, he will pay you royalties.
35. Funding
When a startup requires funding, the founders accept money from an investor in exchange for equity or a part in the company.
36. Pre-Seed Funding
When a startup is developing an idea, it raises pre-seed money to build a prototype.
37. Seed Round Funding
When a startup develops a prototype, it gets seed money to bring it to market and test it.
38. Series A Round Funding
When a startup’s firm begins to thrive, a Series A round of capital is secured to help it grow and become profitable.
39. Series B, C, and D Funding
When a startup wishes to expand its operations, it seeks B, C, and D rounds of funding.
40- Cash Flow
Cash flow refers to how much money enters and exits your business. If it is positive, it is a good thing; if it is negative, you need to improve.
41- Sole proprietorship
This is a business with only one proprietor. This is the individual who initiates it.
42 – Partnership
This involves more than one person doing business as a partner. This can be started by a group of 2-20 persons.
43. Limited Liability Partnership
This is a collaboration where accountability is constrained. This means that in the event of a loss, the partners’ property will be safe.
44: Private Limited Business
It can have up to 200 members, with two being the minimum. The shareholders’ responsibility is likewise restricted in this.
45. Public Limited Business
A corporation becomes a public limited company when it conducts an initial public offering (IPO) to obtain capital.
46. Joint Venture Enterprise
In this, two or more businesses collaborate, such as in the case of HDFC and ERGO’s joint venture.
47— Non-governmental
Non-Governmental Organizations are established with a specific goal in mind: to benefit people rather than make money.
48-Unlimited Business
The owners of the company are fully liable in this regard. This implies that personal property can be at risk in the event of a loss.
49. Covert Launching
They are rarely known to you. These are the kinds of startups that operate in secret, keeping their operations, finances, products, and even names a secret from the public.
50. The Startup Bubble
This phrase has to do with funding for startups. It’s said that when investors begin placing extremely high values on businesses, it’s like a bubble that could pop at any time.
51. USP
We call this the USP (unique selling proposition). That is the unique quality that sets your company apart from the competition.
52. MRP
It’s known as the Maximum Retail Price. This is the price at which a thing cannot be legally sold.
53. Pink Slip
An employee received a pink slip if he had to be sacked. Only email can be used for work in the digital age.
54- ESOP
Plan Employee Stock Option is the name of it. This includes the employee’s CTC in the form of company shares.
55. Equity from Sweat
This reminds me of ESOP as well. Equity is only granted under this after a year of the company’s creation. It has a three-year lock-in period.
56. Note with Convertibility
In this scenario, an investor lends money to a company that agrees to return the money with interest in exchange for stock in the future.
57. SaaS
We refer to this as software-as-a-service. Customers can use the software in this by purchasing a subscription.
58. PaaS
SaaS businesses require a platform to run their software. Instead of developing its own platform, it can leverage Platform-as-a-Service providers.
59. Alpha Release
When a product is created, it is first tested by management or employees within the organization, a process known as Alpha Release.
60. Beta Release
When a product is released to the public for testing and feedback following internal testing, it is referred to as a Beta Release.
61. Burn Rate
Many businesses lose money every month to stay in business, which is known as the burn rate or run rate.
62. Churn Rate
The churn rate refers to the number of consumers who leave a company’s subscription during a given period.
63. Growth Rate
The amount by which a business grows year after year or month after month is referred to as the growth rate. This should be higher than the churn rate.
64. Return on Investment
ROI refers to the amount of money an investor receives in return for his investment in your firm over a given period.
65. Bounce Rate
It displays the number of customers who visit your company’s website and then leave. This is a pretty unique figure in e-commerce.
66. Retention Rate
This is also known as the returning user rate. This refers to how many customers return after purchasing a product or service once.
68. White Labeling
White labeling occurs when a product’s maker brands it for the buyer rather than himself.
69. Go Public
In the startup industry, a brand goes public when it files for an initial public offering. This allows the company to raise money from the general population.
70. Bridge Loan
A bridge loan might run anywhere from two weeks to three years. Startups use bridge loans to bridge the gap between two rounds of funding.
71. Early adopters
Early adopters, as the term implies, are persons who try a product during its initial stages. These are helpful for idea testing.
72. Exit Strategy
When an investor invests in a startup, he plans to profit by selling his investment; this is known as an exit strategy.
73. Pivot
Pivot refers to a company’s shift of course. When the business model isn’t working, the startup needs to pivot.
74. First mover advantage
The term “first mover advantage” refers to when a new product hits the market for the first time and people start using it right away. Like Paytm.
75. Brand
A company’s brand indicates what products are sold under its name. It may also differ from the company’s name. This shapes clients’ perceptions about the organization.
76. Product Market Fit
When the cost of gaining consumers is less than the combined value of all existing and new customers, the firm has demonstrated product market fit.
77. Agreement Non-disclosure
In many startups, non-disclosure agreements are negotiated. This is an agreement between two parties to keep certain details about the startup confidential for a predetermined amount of time.
78. The Serial Business Owner
A serial entrepreneur is a person who uses his original ideas to launch one successful business after another.
79. A competitive benefit
Investors inquire about a startup before making a financial commitment. They are curious about what makes your startup unique in comparison to rivals.
80. Target market
This is the market that inspired you to launch your business. You need to choose if young people, ladies, kids, or anybody else is your target market.
81. API
An API is a tool that makes it possible for two programs to collaborate. Startups nowadays require this in order to integrate technology.
82. KPI
In its full form, Key Performance Indicators are metrics used to evaluate a startup’s performance. These metrics can include profit, recurring revenue, client acquisition costs, and more.
83. LTV
This indicates the customer’s lifetime worth. This is computed by dividing the customer churn rate by the gross margin and multiplying the average revenue per account.
84. Hockey Stick Growth
Hockey stick growth occurs when a startup exhibits slow growth for a while before picking up speed and creating a hockey-like charge.
85. Franchise
A business might choose between two approaches when looking to grow. First, he ought to start his own business and open branches in various locations. He ought to grant his franchise, too. The franchisee is required to pay a franchise fee to the corporation. In addition, a royalty charge must be paid on a monthly or annual basis, dependent on the company’s sales. No changes can be made to the product by the person who purchases the franchise.
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