Finance #1
ownership in something, such as a company
equity
when someone with money helps a new business get started by giving them funding in exchange for a part of the business
angel investment
having something special or better than others in the same business
competitive advantage
getting momentum or progress in your business. It's when people start noticing and using your product or service more
traction
owners of a company. They own shares (stocks) of the company, which means they have a part of its ownership
shareholders
expenses that stay the same no matter how much you produce or sell
fixed costs
when lots of people give small amounts of money to support a project or idea, often through websites like Kickstarter or GoFundMe
crowdfunding
checking out what your competitors are doing
competitive analysis
the group of people who are most likely to buy what you're selling. It's who you're aiming your business at
target audience/market
something is owned by one person or a small group of people, not by the public or a big company
privately owned
expenses that change based on how much you produce or sell
variable costs
what's left over after you subtract all the costs of running a business from the money you make selling your products or services
profit
quick and catchy way to explain your business idea or product in just a short time, like the time it takes to ride an elevator
elevator pitch
how well people know and remember your brand or company. It's when they see your logo or name and instantly know what you're about
brand recognition
a company's shares (pieces of ownership) are available for anyone to buy or sell on a stock exchange
publicly owned
difference between the cost of making something and the price you sell it for
margin
different sources of money coming into your pocket
income streams
when one company has control over a whole market, so there's no competition. It's like being the only one selling something everyone wants
monopoly
a reward system for your customers. It's when they get perks or discounts for being loyal and coming back to buy from you
loyalty program
a piece of ownership in a company
stock
figuring out how much something is worth
valuation
the point where your business makes just enough money to cover all its costs, so you're not losing money but not making a profit yet either
break-even
means your business can grow without too much trouble. It's like being able to handle more customers or make more products without big problems
scalable
standard or reference point that you use to measure how well your business is doing compared to others or compared to your own goals
benchmark
things that have value and can bring money or benefits to a person or business. It can be things like money in the bank, property, or equipment
assets