Shark

Question 1

Advisory stake

Answer 1

Small equity stake offered to investors in exchange for their guidance and mentorship

Question 2

Runway

Answer 2

Time a startup can sustain its operations with the available funds

Question 3

Burn rate

Answer 3

Represents the speed at which an unprofitable company or an early startup consumes its cash reserves

Question 4

cash flow

Answer 4

movement of money in and out of company

Question 5

pre money

Answer 5

determined before taking external funding or latest funding into account

Question 6

pre revenue

Answer 6

refers to a company that has not yet generated any revenue

Question 7

royalty

Answer 7

propose a deal where they invest in exchange for a royalty on every unit sold by entrepreneurs

Question 8

AOV ( average order value)

Answer 8

average amount spent by customer per transaction

Question 9

COGS ( cost of goods sold)

Answer 9

direct costs of producing the goods sold by the company
includes : cost of material, factory overheads, packaging, labor directly
excludes : distribution costs, marketing costs

Question 10

gross margin

Answer 10

profit remaining after subtracting the COGS from the revenue

Question 11

net margin

Answer 11

profit that remains after subtracting COGS and operating expenses from the revenue

Question 12

EBITDA

Answer 12

earnings before interest, taxes, depreciation, amortization
way to measure company’s financial health without getting trapped in tax laws

Question 13

unit economics

Answer 13

direct revenues and costs of particular business measured on per unit basis

Question 14

Ramen profitable

Answer 14

Business inability to produce more profit than is needed to cover founder’s basic living expense

Question 15

Line of credit

Answer 15

User’s borrowing limit for a certain product/ service.
They can use their credit without having to repay it back until the limit is reached

Question 16

ROI
Return on investment

Answer 16

A measure of profitability of an investment

Question 17

SKUs
Stock keeping unit

Answer 17

The more variety of products you have, more will be SKUs

Question 18

Product market fit

Answer 18

Companies target customers are buying, using, and telling others about the companies product in numbers large enough to sustain that product’s growth and profitability

Question 19

QSR
quick restaurant service

Answer 19

Fast food restaurants where you can have a bite without the wait

Question 20

MVP
Minimum viable product

Answer 20

Simplest version of the product that allows the startup to test its concept with early users and gathers feedback before building the complete product

Question 21

Brand & Branding

Answer 21

Brand is the way a company or product is perceived by customers
Branding is the process of creating and disseminating the brand name, it’s qualities and personality

Question 22

Brand equity

Answer 22

Value a company gains from its name recognition when compared to a generic equivalent

Question 23

CAC
Customer acquisition cost

Answer 23

Measures how much an organisation spends to acquire new customers

Includes expenses such as marketing advertising and sales effort

Question 24

B2B
Business to business

Answer 24

Business that sells products or services to other businesses.
This model often involves longer sales cycles and higher ticket item

Question 25

B2C
Business to customer

Answer 25

Sell products or services directly to customers.
This model often involves shorter sales cycles and lower ticket items

Question 26

D2C
Direct to customers

Answer 26

They sell their products or services directly to the customer through their own channels such as website or app

Question 27

TG
Target group ( audience)

Answer 27

Types of audience that the business anticipates buying their product

Question 28

MOAT

Answer 28

introduced by Warren buffet
Economic moat refers to a business’s ability to maintain competitive advantage over its competitors in order to protect its long term profits and market share

Question 29

ATL
Above the line

Answer 29

Marketing refers to a generally untargeted massive campaign to raise brand awareness and reach more people

Question 30

BTL
Below the line

Answer 30

Marketing refers to a much smaller and highly targeted world of ads aimed at individuals

Question 31

Churn rate

Answer 31

Metric that measures the rate at which customers stop doing business with a company

Question 32

KPI
Key performance indicator

Answer 32

Specific Measurable parameters used to evaluate the performance and success of startup

Question 33

Blue ocean strategy

Answer 33

Doing business where there is no competitor. It is about creating new land rather than dividing up existing land

Question 34

SWOT analysis

Answer 34

Knowing about your strength weakness opportunity and threats and using them to your advantage