In today’s world with innumerous words and slang terms, it is hard to keep track of what means what. This rings especially true in the business world. It is important to be familiar with the common startup and entrepreneurship terms, not just when speaking with investors, but also during the execution of your idea. Let’s take a closer look at some of these terms:
If you recognized at least 15 of the 19 words, Congratulations! You are well-versed in the world of business lingo!
If you recognized 10 of the 19 words, you’ve got a pretty good idea of what’s going on. Keep practicing!
If you recognized 5 or less of the words, you’ve got some work to do. Keep trying to learn the common terms!
Look below for helpful definitions to boost your startup and business terminology!
Burn Rate – How quickly you are spending money
POC – Proof Of Concept, or evidence that your idea is feasible
SEO – Search Engine Optimization, how you are getting the most out of the web to promote
your idea (ex: Google Adwords)
CAC – Customer Acquisition Cost, or how much you have to spend to get customers
MVP – Minimum Viable Product, the quickest, cheapest way to get your idea off the ground
API – Application Programming Interface,a piece of computer code that allows different software applications and databases to communicate with one another
ICO – Initial Coin Offering, or a means of fundraising where a company releases its own digital currency in exchange, typically, for ethereum or bitcoin
Business Model – explains how you are going to make money
Target Market – who specifically will be using your product or service
Competitors – who is in the same space as you (can be direct or indirect)
501(c)(3) – a non-profit organization who is exempted from federal taxes
B2B – a type of transaction that takes place between Business To Business
C2C – a type of transaction that takes place between Customer to Customer
B2C – a type of transaction that takes place between Business to Customer
SaaS – “Software as a Service” A subscription sold so other users can use your software
Social Venture – a business venture that prioritizes social well-being and enhancement as well as their own business
Green Startup – a startup/business whose product or service contributes to the future of sustainability
VC Investor – a professional who invests money in businesses in exchange for an equity share in the company. Invest larger amounts than Angel Investors and therefore usually focus on proven/later-stage startups
Angel Investor – a person who invests their own money during the company’s early stages in exchange for a share in the company. Generally invest smaller amounts than VC Investors
