25 Oct

10 jargons every entrepreneur must have at their disposal

Post Image

In the world of entrepreneurs,  you need to stand out of the crowd for people to notice you, for which you should be updated with new tech and terms in the market. With the growth in the number of start-ups,  the entrepreneurial dictionary of jargons are increasing. Use of entrepreneurial jargons develops camaraderie among different people with same occupation.

Here are some jargons that every entrepreneur must be aware of in order to grow and flourish:

#1. Bootstrapping

Bootstrapping refers to a self-start process. In business the jargon “bootstrap” means establishing the business with internal cash instead of hunting for a heavy pocket investor.

The biggest advantage of bootstrapping your company is retaining full ownership of the company. You needn’t work according to the direction of the investors. YOU ARE YOUR OWN BOSS!!

Overall, it is good if you bootstrap your company for as long as possible. It leads to better control of the company while retaining full ownership at the same time.

#2. Burn Rate

In any business, this is the scariest term used.

Why? Well, the definition has the answer. Burn rate is the rate at which the company is losing its cash. It is determined on monthly basis. For example, the burn rate is $65000. This means the company is losing $65000 per month. Sounds horrifying? When the shares hill down it’s time for the company to start gaining profit, hunt for additional funding or shut down.

The term burn rate also comes in project management. The burn rate of a project determines how the hours allotted to the project are used. This is done to find out when the work is slipping out of hand, or when the efficiency of the project is dropping down.

#3. Incubator

Incubators are the companies or individuals that help a new business or a startup to develop in their initial stages. Any new business or startup lacks in resources and services. These incubators provide the services to the newbies helping them through the huge blocks on their way.

The services and resources that are given include space, funding, legal, accounting, computer services and other requisites.

#4. Angel Investor

Angel investors are investors who provide cash flow to small businesses and startups in their initial stages.

They are informal investors who provide capital for start ups in barter for ownership equity or convertible debt.

#5. Buyout

It is the investment done by a party to acquire the target company’s major share. The buyer basically buys out the equity ownership of the target company.

Example:  I am thinking to buy out the startups I invested in.

#6. Unicorn

Unicorn, unlike the fairytale beauty, means a company or to be more specific a startup that has no established performance record with stock market.  A unicorn company is the unlisted company that has bagged a  valuation of $1 billion.

#7. Decacorns

There are so many companies with sky-high valuations of $10 billion or more that the industry has come up with a whole new name to describe them.

These are the companies just like the unicorns but have valuation of $10 billion in the market.

This list includes Airbnb, Dropbox, Pinterest, Snapchat, Uber, Flipkart & many more.

#8. Iteration

Iteration is the process of improvement after developing. The company first decides their priority list of updates and features, then builds whatever hits the number one on their priority list, releases the new feature to customers and get feedback from them and restart the cycle with improvements.

#9. MVP

MVP is minimum viable product, which means that the product is having sufficient features in it to be sold out to the early customer and to provide feedback for future product improvement.

#10. Pre Seed Investment

Pre seed investment is the very first investment that the startups receive. The investments can be done either by angel investors or by incubators.

There are many more jargons/slangs,  but not all of them can be used, as you need to sound professional in your business and not a jerk. These listed jargons will not just make you sound decent but will also get you attention in the crowd.