11th Jun2019

An Essential Glossary For The Newbie Entrepreneur

by James Smith

idea-heads

If you are thinking of launching your very own startup, you might be a little daunted by the jargon being thrown your way, before you’ve even constructed your business plan. However, there’s very little to feel overwhelmed about provided you’ve carried out the much needed market research and have the funding ready to ensure a buoyant cash flow to hit the ground running. If you are feeling a little perturbed by some of the new business terminology being bandied about, have a read of this useful glossary that will have you feeling more confident in your entrepreneurial skills in no time.

A

Advertainment - These blog posts aren’t truly impartial pieces of content on the internet. Instead, they are part of the wider advertising network that young startups tap to ensure more clicks and referrals to their website.

B

B2B - This is when your business sells to another business. Easy as.

B2C - You got it! This is where your business sells to a customer. This is the standard startup structure if you are planning on selling a range of products to the masses, whether this is custom made baby tee shirts or imported copper wiring from Indonesia. Selling to your customers is made more difficult if you don’t have the online presence needed to make your startup visible. This is where the advertainment might come in handy.

Boot Strapping - If you are all out of investment options, and you need to secure more funding, you might need to get on your hands and knees and ask for some financial assistance from family and friends. If you do this, then you are boot strapping. There’s nothing wrong in doing this, but be professional and make it worth their while. Draw up contracts and pay the money back with interest. Ensure that they get something out of the deal, and that they can see you investing your own hard earned cash as well.

Branding - Your branding is what makes your company the way it is. It gives a message to customers and suppliers and rivals about the ethos of your business. It’s vital that you invest in some corporate identity management software to ensure that your branding is reflected throughout all aspects of your business functions from social media to letterheads.

C

Cottage Business - If you are thinking of starting a cottage business, this tends to be artisan or crafty in nature. There is very little scope to scale up and you might not become a millionaire, but you can be successful and earn a decent wage. People who switch careers and choose to be jam makers, tee shirt designers and bakers tend to have an excellent quality of life, work life balance and enjoy what they do.

D

Deck - A deck (or pitch deck) is a set of ten Powerpoint slides that will blow the socks off any potential investor that you choose to make a presentation to. It’s your job to enthuse any potential investor, whether this is the bank manager or a business angel, with just how viable and profitable your startup is likely to be. Be engaging, get suited and booted, and have a haircut. Ensure that your deck is as polished as possible to ensure the greatest chance of securing funding.

E

Exit Strategy - While no one wants to be thinking about selling their startup just as it launches, the chances are that some day you may be ridiculously successful and you want to cash in. Your exit strategy thinks about who you are going to sell to and how you will sell for the most money.

whiteboard-strategy

F

Freemium - Many businesses choose a loss leader product to try and entice new customers. By giving something away for free, startups then try to sell add-ons or more advanced features. This can be an effective marketing strategy, but it can also frustrate if your motives aren’t clear.

I

Intellectual Property (IP) - If you’ve invented something, or there is something particularly unique and special about your product, then you might want to obtain a patent to ensure that no one else can copy it. Think about the KFC chicken coating. This is a piece of intellectual property that has remained a secret for generations.

L

Launch - This term is relatively self explanatory. When you come to making your business live and visible to the masses and trading, you have ‘launched’ your startup. You might also work towards mini launches such as a new product in a range or expanding a range of services.

P

Pivot - Most startups will eventually want to change direction or expand or broach new markets or territories. Often linked to growth and expansion, your startup will pivot to maximise its successes. Every business, big or small, has to pivot to some extent in order to continue. Moving with the times may mean changing business methodologies, setting up in a new territory or trying to secure a new demographic as a customer.

R

ROI (Return On Investment) - The ROI is the necessary figure that every potential investor needs to work out from your business plan. You can give them a figure of how much you think they can be in line for in terms of a windfall after twelve months, but they will want to do the number crunching themselves. The higher the ROI, the greater chance of securing funding.

Runway - A little sad, but the runway is when your startup is failing and you need to consider how much longer your can trade and carry on before running out of runway.

V

Value Prop - Similar to your USP or Unique Selling Point, your value prop is what makes your company appealing to customers. This could be the customer experience that you provide, the value for money you offer, or the wide range of services you offer. Think about what makes your startup special and plug this to the masses.
______

Being an entrepreneur is tough, especially when people love to use business jargon. However, if you hone your business vision and stick to an organised and well funded plan, your startup will be on course for success.
______

Sponsored Post
Related Posts Plugin for WordPress, Blogger...
Off

Comments are closed.