Do you know your dragon from your decacorn, your unicorn from your gazelle? Do you know why a home run and a hockey stick are as at home in the boardroom as on the sports field?
If you are in the business of, well, business, it is important you feel familiar with the phrases and expressions of enterprise. Whether you are a fledgling business owner or simply an interested party (hello mum!), Crowdfund Campus’ handy phrasebook will have you speaking startup in no time.
Have you read part one: The Entrepreneur’s Phrasebook (A-M)?
The Entrepreneur’s Phrasebook: N-Z
Networking. The process of meeting new people and making connections with individuals in your industry, or interested parties (perhaps investors), to build business relationships, increase your knowledge, and expand your circle of contacts.
Outsourcing. An increasingly popular way of working in the Internet age, outsourcing is when you look to external experts for support with certain operational services (for example, accounting, marketing, IT).
Partnership. A legal form of a business in which two or more people share the profits and liabilities of a venture. Less complicated and less expensive than forming a limited liability partnership, however each partner is responsible for the debts incurred by the business – not just their own, but also those of the other partners.
Patent. A patent grants an inventor the sole right to make, use and sell something for a limited time, in exchange for public disclosure of the invention that is patented. It prevents anyone else from copying or using the same technology for the period of the patent.
Pivot. A shift in a business’ strategy, taking into account the potential for failure and so adjusting to create success. Most startups face a number of pivots in the process of finding the right customers and their positioning in the market.
Product Market Fit. Also known as PMF (not to be confused with PMT…), this is when a business has enough paying customers that the revenue exceeds expenses.
Public Relations. Part of the marketing mix, public relations (PR) manages the way a business communicates their message in order to help people understand what a company does, and create a strong and positive perception.
Sole Trader. An entrepreneur who owns and runs their business on their own (though, contrary to what the name suggests, a sole trader can employ or contract others to work for them).
Scaleable. The inherent potential of your offering. All entrepreneurs want to aim for a scaleable business that can be rolled out to a wide locale.
Scale Up. The process of expanding a business, perhaps following initial investment. Not to be confused with the noun, scaleup – the name for a small company that has expanded very quickly.
Sniff Test. An assessment of a startup’s minimum viable product (MVP) – a test product produced quickly to see if there is demand.
Sweat Equity. When, in return for their time/skills, you recompense someone with shares in your company rather than cash.
Swot Analysis. Standing for ‘strengths, weaknesses, opportunities, and threats’, a SWOT analysis allows you to examine what is good about your product or service (strengths), what is bad (weaknesses), where and how it can be sold (opportunities), and who and what might to try stop you (threats).
Trademark. A legal form of protection for words, names, symbols, signs or colours that identify a company, product or service. Unlike patents, a trademark can be renewed indefinitely, so long as it is being used in business.
Unicorn. Coined by Cowboy Ventures founder Aileen Lee in 2013, a unicorn company is quickly valued at more than $1 billion – and considered as rare as a mythical beast.
Valuation. An estimate of the worth of a business and its assets.
Venture Capital. The finance offered to early-stage enterprises with high-growth potential. The majority of venture capital comes from professionally-managed public or private firms who seek a high rate of return.
Venture Capitalist. An individual who invests their own equity in startup businesses and small companies who predict high-growth.
This two-part series is brought to you by Crowdfund Campus – home of Sandpit, the virtual marketplace where you can test your business ideas safely through simulations. Mapped to the QAA guidance on Enterprise and Entrepreneurship, Sandpit is used by hundreds of students and enterprise educators nationwide. Fancy finding out what all the fuss is about? Contact us today for a discussion and free demo.
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