Entrepreneurship vocab
An individual who creates and manages a new business, taking on financial risks in the hope of making a profit?
What is an entrepreneur?
This is the process of promoting a product or service to potential customers
What is marketing?
This investor provides capital to early-stage startups in exchange for equity.
What is an angel investor?
Divide 72 by an investment's annual rate of return, and you get this, an estimate of how many years it takes for your money to double.
What is the Rule of 72?
Before investing lots of time and money, entrepreneurs should determine whether their idea actually solves this for customers
What is a problem
A newly formed company designed to grow quickly and develop a unique product or service?
What is a startup?
This is the name, logo, colors, and overall image that helps customers recognize a business
What is branding?
This metric tells you how quickly a startup is spending its cash reserves before becoming profitable.
What is burn rate?
This is a portion of a company's earnings distributed to shareholders, typically paid quarterly.
What is a dividend?
Entrepreneurs should identify this person or group to understand who has the problem and who would benefit from a solution.
Who is the ideal customer
A written document that explains a company's goals, strategies, target market, and financial projections?
What is a Business Plan?
The specific group of consumers that a business believes is the most likely to buy its product or service?
What is a target market
This is the point where a startup's total revenue exactly equals its total expenses.
What is breakeven?
When a private company first offers shares to the public on a stock exchange, it does this, a three-letter abbreviation.
What is an IPO (Initial Public Offering)?
If a startup wants to know “How many people could potentially buy my product?” they determine this.
What is market size
The total amount of money a business earns from selling its goods or services before expenses are subtracted?
Age, gender, cultural background, income, education, values and common challenges are examples of what factors used to identify a group?
What is target audience
This healthcare term was adopted by startups to describe the people who will feel the most pain from a problem and are actively looking for a solution.
Who are early adopters (or early evangelists)?
When multiple venture capital firms invest together in the same round, it's called this.
What is syndication?
Before launching a business, an entrepreneur should identify the specific issue their product or service is designed to solve.
What is the customers problem
The financial gain remaining after all business expenses and costs have been subtracted from total revenue?
What is profit?
Social media, community events, pop-up shops, and trade shows are examples of ways a startup can do this with its target market
What is reach the target market
In the Lean Startup methodology, this is structured course correction, changing an element of the business.
What is a pivot?
Coined by Benjamin Graham, this strategy involves investing a fixed dollar amount at regular intervals regardless of price.
What is dollar-cost averaging?
Entrepreneurs research these businesses to see who else is offering similar products or services.
Who are competitors