What Is A Startup Company? All Definitions You Need To Know
What Is A Startup Company?
A ‘start-up’ is a new business. This is sometimes used in connection with an experienced entrepreneur but usually, it refers to people who this is their first business.
Angel Investing
This is when someone who has some money invests it in a start-up business. They usually get part of the business equity in exchange.
Example: On the one hand, if the angel investor like your idea they are more likely than a bank to take risks and give you money. But on the other hand, they will then be part owners of the business with you, so they will be able to have some control over your company as well.
What is ‘branding’?
This is when you give your business or product a certain image or style. Perhaps you always use the same color or logo. When customers see your products, they know that they are from the same company.
Example: In some industries such as ‘fashion’ having a distinctive brand is very important. Branding can make your company seem more attractive. It is also useful to help you stand out from the crowd so customers remember your products.
What is a ‘business plan’?
Before you start a new business you make a ‘business plan’. This is a written plan about how you are going to fund and build the business. It also shows how you plan to make money. It is a good way of seeing whether the business is actually possible before you get started.
What is ‘cash-flow’?
‘Cash-flow’ is how much money you have coming into the business Vs how much money you have going out. If you always have enough money flowing into your company that you can buy new stock and pay your employees then you have ‘good cash-flow’. However, if you sell lots of products but have to wait a long time to receive payment then you may have ‘’cash-flow problems’’. Especially if you need the money from the sales to keep the business going.
What is an ‘entrepreneur’?
This is someone who starts a new business or enterprise. Someone who likes to start businesses.
Example: What makes a good entrepreneur? I think you need to be willing to fail and then just keep going. To have an entrepreneurial attitude you need to be constantly looking for opportunities and be willing to take action.
What is a ‘minimum viable product’?
A ‘minimum viable product’ or ‘MVP’ is a new product that doesn’t have many features. Basically, you make a new product quickly and then try to sell it. If it sells then you improve it and add new features. Rather than spending lots of time and money creating something which then doesn’t sell very well, you quickly check that it sells, and then spend more time and money on it.
Example: You might spend a year making the best product, but then in the end no one wanted to buy it. So it’s better to make sure that you make an MVP and then improve on it if people start buying it.
What is a ‘niche’?
This is a small very specialized market. For example, the book you are reading is aimed at the ‘business English for intermediate learners’ niche.
Example: The great thing about the internet is that you can sell a niche product and still be successful. Before if you had a business in a specific niche it was difficult to reach your target market, but now through the internet, it is much easier.
What is ‘pivoting’?
This is when you start a business or make a new product, find that it is not that successful, and then change the direction slightly. This is done if you find that the business will not be successful unless you adjust the direction slightly.
Example: At what point should you give up on a project? If you really believe in something you should not give up too quickly. Instead of abandoning something, you should think about pivoting over to something that may be a bit more successful. Then all of your hard work at the beginning would not have been a waste.
What is a ‘product launch’?
This is when you release a new product so that the public can buy it.
Example: The most stressful time in business is during a product launch. There’s just so much to think about. After the launch, you can relax a little, unless, of course, the product doesn’t sell. Then you have to start stressing again!
What is ‘scaling’?
This is when you make your business or enterprise bigger.
Example: A business is going quite well but the owner is obsessed with trying to scale it. Of course, scaling a business means that you have the potential to make more money, but it also means that you take on more risk. In this case, the owner is trying to move too fast and eventually ran into problems.
What is a ‘wantrepreneur’?
This is a slang term that describes someone who is always talking about starting a business but never takes any action. This is not a very polite term.
Example: I hate the word ‘wantrepreneur’ but it does describe a real type of person. They are always talking about starting a business but they never actually do anything. My advice to wantrepreneurs is to stop waiting for everything to be perfect and just to get started. Conditions will never be perfect, you just need to be brave and get started.
