10 start-up terms every rookie entrepreneur should know
“We need a ‘pivot’ so that we can ‘disrupt’ the industry.” “But first, we may need an ‘accelerator’ before we go for the ‘low-hanging fruit’. The next time someone speaks to you in this seemingly cryptic language, don’t just stand there nodding helplessly. Now that you’ve spent months racking your brain to come up with start-up inspiration, it’s time you brushed up on your business lingo. Here are some of the most common start-up expressions used in the start-up environment across the world.
What you think it means: To strap on a big old pair of boots and get ready to seize the day in an illegal manner.
What it actually means: In start-up culture, bootstrapping refers to when a company has started using personal funds without external financial aid with the exception of assistance from family and friends.
What you think it means: A mysterious seven-storey tall device that can completely destroy (read: blow up into smithereens) your evil competitor.
What it actually means: A start-up accelerator is a mentorship programme that takes several entrepreneurs under its wing simultaneously by investing time and money in exchange for part of the company’s shares.
What you think it means: The all-important device on which your company’s operation depends.
What it actually means: To change the strategy of a company to adapt to changes according to the demands of the market. For example, Twitter was a podcasting business before it became a sensational social media platform.
What you think it means: When a hacker tracks his or her personal growth for the betterment of a company.
What it actually means: In the context of business, growth hacking refers to the use of non-traditional and inexpensive marketing tactics to optimize the growth of a start-up. One of the best examples of growth hacking is the story of Facebook in its early days. Facebook started to give away embeddable badges and widgets that users could post on their own websites and blogs and that linked back to their own Facebook pages. This led to millions of signups and retained users to the social network.
What you think it means: A proposal to just about anyone who will listen to you when you’re stuck in an elevator.
What it really means: A concise, single-sentence description of your start-up or business idea that will be pitched to potential customers and investors.
What you think it means: An unusually energetic, and good-looking, local.
What it really means: A hyperlocal business model refers to a start-up that offers instant delivery of products and services within a well-defined community.
What you think it means: A phrase that’s applicable if you’re a fruit seller, it refers to selling only those fruits which are nice and easy to pick.
What it really means: A product or service that’s easy to sell, a target that’s easy to achieve, or even a client who seems likely to buy your product.
What you think it means: The rate at which you burn calories because of the crazy amount of running around you’ve been doing to set up your business.
What it really means: The rate at which your company is losing money or using up its capital on a monthly basis before breaking even.
What you think it means: How to quietly exit the market after your start-up fails miserably.
What it actually means: The plan a business owner or venture capitalist follows to sell some or all of their ownership of the company so as to gain a return on investment.
What you think it means: The state of being strong and in good enough shape to handle a start-up.
What it actually means: The tendency or likelihood of a website, app or service to entice users to get even more users to start using it.
Text & Picture Credits: Beverly Pereira & Shutterstock