Quick (cheat sheet on) terms you need to know
Angellist: https://angel.co/: A website where startups can connect with a network of angel investors
Angel Investor: Informal investors who inject a one-time investment into promising startups in exchange for ownership equity or convertible debt.
Balance Sheet: http://www.investopedia.com/terms/b/balancesheet.asp. A financial document detailing current assets, liabilities and capital of a business.
Bootstrap: Usually what the founder of a business provides to the business in order to raise capital.
Business Model: https://hbr.org/2015/01/what-is-a-business-model. A document that explains the rationale for how a company creates, delivers and captures value generating revenue and costs.
Business Plan: https://www.entrepreneur.com/article/247574. A document that details how a business plans to achieve its goals.
Cash Flow Statement: http://www.investopedia.com/articles/04/033104.asp?lgl=rira-baseline. One of the financial reports that shows how a business uses its cash over a specific time frame.
Customer Acquisition: Strategies to generate customers
Elevator Pitch: A 30-second description of a business, product or service designed to generate interest for further dialogue on a product or service.
Entrepreneurship: The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit.
Entrepreneur: An individual who, rather than working as an employee, founds and runs a small business, assuming all the risks and rewards of the venture. https://www.investopedia.com/terms/e/entrepreneur.asp#ixzz51YxxdgLs
Financials: https://www.sba.gov/blogs/3-essential-financial-statements-your-small-business. Statements of a business financial status, and includes a balance sheet, income and cash flow statements.
Founder: The entrepreneur who starts a business.
Fundraising: Raising money through sales, donations, or investments.
Income Statement: http://www.investopedia.com/ask/answers/101314/what-difference-between-income-statement-and-balance-sheet.asp?lgl=rira-baseline. Income Statement measures a business’s financial performance and includes revenues, expenses, profits and losses over a specific time frame.
Innovation: Innovation refers to changing or creating effective processes, products and ideas. For businesses, this could mean implementing new ideas, creating dynamic products or improving your existing services.
NAICS: The North American Industry Classification System (NAICS) classifies business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. economy. The NAICS industry codes define establishments based on the activities in which they are primarily engaged. The SBA uses the NAICS code to determine eligibility for SBA’s financial assistance and to its other programs, as well as to Federal government procurement programs designed to help small businesses.
Pitch Deck: A slide presentation that accompany a verbal pitch.
Pivot: “Pivoting” is a familiar word in the startup world. When the first business model isn’t working (and this happens more often than not), the CEO and team pivot to plan B. Pivoting doesn’t necessarily mean desperation.
Pitch: A pitch typically takes the form of an entrepreneur or group of entrepreneurs presenting or describing their ideas to prospective investors. Generally contains more information than an elevator pitch.
A Pitch Deck: For the purpose of funding, it gives potential investors a brief idea of what your business is about, who your target audience is, and other relevant information that will help convince them to write you a check. It could be in the form of a PDF or slides and/or videos.
Profit and Loss: A profit and loss statement (P&L) is a financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time, usually a fiscal quarter or year. https://www.investopedia.com/terms/p/plstatement.asp#ixzz51YyZ7Bg1
Seed Capital: The capital used to start/launch a business.
Small Business: Small businesses are privately owned corporations, partnerships, or sole proprietorships that have fewer employees and/or less annual revenue than a regular-sized business or corporation.
Startup: A young business in early stage of development, and searching for a business model.
Venture Capital: https://www.forbes.com/sites/georgedeeb/2016/07/18/what-exactly-is-venture-capital/#20ab208e2501 Money provided by private investors or specialized financial firms.