Startup is the trending word among every techpreneur in Nigeria, including the youths who find this “modern entrepreneurship model” most appealing.
But, if you’re about to join the train of the next startup or you are already into it, there are some startup jargons you must know. If not for anything, you need to know these words and their meanings so you can at least flow in conversations with fellow startup enthusiasts, owners and wannabes.
Without much talking”, here are 15 startup jargon you should know.
Of course, we have to start with the word “startup” itself. A startup is a new and fast-growing company which usually incorporate the Internet and ICT as a an essential component.
In other words, startup businesses are usually Internet and ICT powered businesses which aims to rapidly dominate the available market.
The keywords to note here are: “rapid” and “tech”
InvestoPedia put it this way: A Venture Capitalist (VC) is “an investor who either provides capital to startup ventures or supports small companies that wish to expand but do not have access to equities markets. Venture capitalists are willing to invest in such companies because they can earn a massive return on their investments if these companies are a success.”
3. Market Penetration
In business, Market Penetration refers to the percentage of the potential market the business is hoping to capture (or have captured). Usually, the VCs would want to know how fast you can capture the market.
ROI which stands for Return On Investment is how much your business has made for the money and all other inputs to it. This can also mean what investors expect to get for what they put into your business. It can also mean your returns over a particular marketing campaign.
5. Accelerator (Incubator)
Most people from tech background think about motion when they hear the word “accelerator.” Well techie, this is not that kind of accelerator. In startup, the term Acelerator, also known as Incubator is a center where startups are incubated, mentored and sometimes funded.
Again, some techies will think the CSS framework when they hear Bootstrap. Well, forget about web design now and think startup.
In startup jargon, Boot-Strapping literally means a startup which is using personal cash or cash from friends and family to run its operations.
7. B2B and B2C
Back-to-back? Not really. B2B which stands for Business to Business means that the startup products or services are targeted to companies or other businesses. In other words, Business-to-Business means that the startup business model is to sell to other businesses and not to consumers or public directly.
What about B2C? B2C which stands for Business to Consumer means that the startup sell its products and services directly to consumers or the general public.
8. Burn Rate (Run Rate)
Burn Rate, also known as Run Rate is how fast your startup is gulping your cash! That is, it is a measure of how quickly the startup is taking up your cash. This could be faster or slower than expected.
9. Deck (Pitch Deck)
Deck is basically a consice but maximally impactful presentation of your business. Usually, you do this with a short PowerPoint slides, say 10 slides, that covers all essential aspects of your startup, including its like real feedback of your actual or potential consumers about your product or services.
10. Freemium and Premium
In many occasions, especially in tech businesses, some features of the products or services are offered for free to the consumers. This is what freemium is.
Because the free versions of such products or services have limited features, the consumer must “upgrade” to a paid version of the same product in order to access the full or more features. This full-featured product is often referred to as Premium version.
11. Lean Startup
The Lean startup ideology is to get started with your business quickly without much delays in trying to prove the business concept from the onset. In other words, you want to get started with the much you have put together and then prove your business concept as you go.
As you get going, you want to know what will work or is working best for your consumers in the cheapest and effective way through constant feedback so you can adjust accordingly.
Okay soccer fans, we are not talking about Most Valuable Player here. Let’s talk Minimum Viable Product, MVP in startup.
MVP in startup is simply the bare-bones version of your product which is required to achieve proof of concept.
A startup that is ‘Pivoting’ is settling for the best product option for the business. This may be using the established tech for an entirely new purpose, changing directions of the company or doing business in an entirely different market segment.
14. Term Sheet
The Term Sheet is a business document in which details about the business and its owners roles are outlined. Hence, in Term Sheet you have information like what percentage of ownership and voting rights will the Investors get for putting funds in your startup.
15. Value Prop
What value prop ask for is that feature of your products or services which cannot be easily found elsewhere. This is usually the “selling point” of your business.
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