Basic Business Terms Flashcards
gap in the market
a market opportunity, an opportunity to sell something not yet available
The start-up did thorough market research which led them to finding a gap in the market.
start-up capital
money to fund a new company
Before founding a company, it’s important to think about how much start-up capital will be needed and where it will come from.
business model
how a company operates in order to make a profit
Business models like subscriptions, leasing and product-to-service help to ensure that a company continues to generate turnover over time.
stake
share in a business
As a shareholder, I have a significant stake in the business and actively participate in decision-making processes.
return on investment
profit from shareholding
The investor was pleased with the high return on investment generated by the shares they purchased in the company.
business plan
document containing financial estimates for a business
Before launching the startup, the entrepreneurs meticulously drafted a comprehensive business plan outlining their vision, goals, and financial projections.
product description
A product description is a detailed explanation of a product’s features, benefits, and specifications.
The product description highlighted the smartphone’s long battery life and high-resolution camera.
network of contacts
group of people who can be helpful to your business
Building a strong network of contacts within the industry proved invaluable for securing partnerships and expanding the business.
venture capitalist
someone who manages the pooled money of others (invest)
The venture capitalist provided much-needed funding and strategic guidance to the startup in exchange for equity.
Cash flow
refers to the movement of money in and out of a business over a specific period, typically measured monthly, quarterly, or annually.
Monitoring the company’s cash flow is essential for ensuring financial stability and liquidity, as it helps management to predict and manage cash shortages or surpluses effectively.
financial backing
support in the form of money
With the financial backing from investors, the company was able to scale up operations and launch new product lines.
business angels
individuals who invest personal funds into a start-up
The business angels were impressed by the innovative concept and decided to invest their personal funds into the startup.
turnover
amount of business done in a period of time
The company’s high turnover reflects its strong sales performance and market demand for its products.
loan
money which is lent or borrowed
The entrepreneur secured a loan from the bank to finance the expansion of their business.
exit strategies
the plans or methods a business or investor has in place to liquidate or divest their interest in a particular investment or venture.
Developing robust exit strategies is crucial for investors to minimize risks and maximize returns on their investments.
risks
the potential events or circumstances that may have adverse effects on the achievement of business objectives or the success of a project, investment, or operation.
Before entering a new market, it’s essential to conduct a thorough risk assessment to mitigate potential risks and uncertainties
Maturity
a stage in the lifecycle of a product, market, or organization where growth has stabilized, and the entity has reached a level of stability, profitability, and market acceptance.
After years of steady growth, the company reached a stage of maturity where it focused on maintaining market share and optimizing operations.
entrepreneur
an individual who initiates and manages a business venture, taking on financial risks in pursuit of potential profits.
As an entrepreneur, she founded multiple successful startups and is known for her innovative ideas and business acumen.
founder
a person who establishes or creates a business, organization, or company, often taking the initial idea and turning it into reality.
The founder of the company started the business from scratch and built it into a global enterprise.
premises
the physical location or property where a business operates, including buildings, land, or facilities.
The new office premises provide ample space for the growing team and feature state-of-the-art facilities.
purchase
the act of acquiring goods or services by paying a specified amount of money, typically in exchange for ownership or possession.
The company decided to purchase new equipment to enhance production efficiency and meet growing demand.
shares
these represent ownership units or equity in a company, typically bought and sold on a stock exchange, allowing investors to participate in the company’s profits and losses.
Investors can buy and sell shares in the stock market to gain ownership stakes in publicly traded companies.
acquisition
the process of one company purchasing another company, acquiring its assets, liabilities, and operations, often as a strategic expansion or investment.
The acquisition of a competitor allowed the company to expand its market presence and divers
Shares
Ownership units in a company, bought and sold on a stock exchange.
Investors can buy and sell shares in the stock market to gain ownership stakes in publicly traded companies.
Acquisition
Process of one company purchasing another, acquiring assets and operations.
The acquisition of a competitor allowed the company to expand its market presence and diversify its product offerings.
Collateral
Asset pledged as security for a loan.
The borrower offered their property as collateral to secure the loan from the bank.
Demand
Desire, willingness, and ability of consumers to purchase goods or services.
There is a high demand for the company’s new product, leading to increased sales and revenue.
Profitable
Generating more revenue than expenses, resulting in a net profit.
After implementing cost-saving measures, the company became highly profitable, allowing it to invest in expansion projects.
Break even (verb)
Reaching a point where total revenue equals total costs.
The new restaurant needs to attract enough customers to break even and cover its operating expenses.
Supplier
Person or company providing goods or services to another business.
We need to find a reliable supplier for raw materials to ensure consistent production.
