Startup Terminologies you should know before funding a business
In the Tabula Rasa theory by John Locke, it is believed that individuals are born without prior knowledge and knowledge is exclusively gained through experience. Mentioning this theory leads us to realise that when someone enters a new industry specifically, in business, they would not be fully equipped to know the ins and outs of the industry without experiencing it themselves. We would provide you the basics of what should be done whenever you are entering a new community. First off, knowing the terminologies that people in a certain community use will help you submerge yourself in the environment easier.
For startups, it is important to study the sector for the business so you can strategise your marketing efforts effectively. Moreover, understanding the words used by the stakeholders and the shareholders would help you communicate yourself better. Here are some of the need-to-know business terms you might encounter in the business field:
1.Pivot – means to revamp your business model when the current one you have is not working. If you heard this word, one is simply saying to change a business direction.
2.Product-Market Fit – According to Marc Andreeson, “Product-market fit means being in a good market with a product that can satisfy that market.” Put your product that could satisfy strong market demand as it is a first step to build a successful business.
3.Co-working Space– A place where different individuals from different companies and ideas work and share the same equipment.
4.Unicorn – it is a term that was recently introduced in the venture capital industry. It simply means that a certain startup company has soared to a $1 billion valuation.
5.Bootstrapping – means building a company or starting a business with the use of nothing but personal savings. Moreover, a bootstrap is someone with no outside money or other financial support to launch a business.
6.Startup Metrics – Key performance indicators of a business that usually has a financial component. It is a key insight for business to measure failure or success.
7.Pitch Deck – it is a quick presentation or overview report that a business owner presents to an investor that highlights the key areas of the startup.
8. Burn Rate – usually used to know how fast or quick a business spends money. Also known as run rate.
