SOME BUSINESS TERMS THAT ANY ENTREPRENEUR MUST KNOW

As and when a venture starts to grow, it becomes imperative for the entrepreneur to understand the technical aspects of the startup game.

Not only for the level of startups but at the business level as well, it has become crucial to come in terms with the advanced way of business compliance.

Work processes get expanded to include in its extensive ambit departments exclusively for

}       Customer care,

}       Sales,

}       Marketing and promotion,

}       Logistics,

}       Warehousing, etc

So, people behind the venture taking decisions ought to know of specific business terms to raise their venture into the next level.

 

Below mentioned are some of the must-know terms for entrepreneurs:

 

Geolocation

 

Geolocation is the process of making available relevant and real-time information about a person or a device.

Coming to know as to where a particular thing is located as on one specific time enables decision-makers to gather useful insights on the same.

It includes the latitude and longitude coordinates as well for meticulous precision.

Major of times, this geolocation practice is undertaken by companies for tracking raw material movements or that of customers or distributors.

 

MVP

MVP or Minimum Viable Product is the basic version of the product idea that is placed for aggressive testing.

This MVP is tested on several grounds for understanding its properties and risks if any.

After this initial testing only, the next round of product enhancement is done to make it appealing for the end consumers.

If during the initial testing itself, it fails to comply with significant metrics, then, a better version of the product is made, replacing the earlier version.

 

PAAS

Just like software as a service, PAAS, is the platform as a service.

For the implementation of software as a service, paas is required for effective functioning.

This is a digital dashboard or a platform through which major software implementations are undertaken.

 

Aquihire

It is something new in the words for entrepreneurs.

Aquihire is the process of acquiring or purchasing another small startup just for the sake of gaining their talent pool.

 

Another startup in the similar domain area might have the required number and type of people in terms of skills, experience.

So by acquiring the whole startup itself, the talent pool itself is gained.

 

KPI

KPI or Key performance indicator is the keyword used to measure main performance metrics of any venture.

These can be in the percentages of:

}       Turnover

}       Sales

}       Retention ratio

}       Market capitalization

 

CAC

The total cost incurred by a business to gain customers is called as the customer acquisition cost.

This cost includes the cost of marketing, sales, overheads, salaries, etc.

And the formula is:

Cost of sales, promotion, marketing, and salaries divided by the number of customers.

 

Repeat purchase rate

Fundamental term to measure the success rate of the company’s marketing and promotional efforts.

Repeat purchase rate signifies the rate at which the present customers return to purchase the same items.

And higher is this rate; more exceptional is the possibility of the retention rates to go up.

 

The formula for this rate is:

The number of customers who have shopped more than once / total number of customers

 

Multi-level Marketing

Multi-level marketing or MLM is a layered process on which a line of distributors employs further distributors under them.

In this, the existing distributors of the company employ new distributors for a percentage of sales as an incentive.

These recruits are called as down the line, and when these down line distributors also signup recruits, they gain incentive via percentages in the similar manner.

 

Carrot or lead magnet

This is a gift provided to the subscribers as an introductory offer.

Giving for free value-added and useful things can enable people to gain instant interest in the venture of the company.

Their attention span gets increased as well as their website page visits.

This carrot can be in the form of guides, templates, eBooks, and informative videos.

 

CTOR

Click to open rate or CTOR is a metric used to gauge the impact of promotional emails.

When readers of email click onto the link mentioned therein, the probability of the email marketing campaign getting successful is increased.

The formula for this CTOR is:

Total number of clicks on the links divided by the total number of people who opened the email

Improvement measures to raise this rate can be undertaken in the form of email contents, presentation, etc.

 

Many entrepreneurs are going here and there in search of funds as the level of cash flows coming in are not enough.

Many pending expenses for the growth of the firm along with urgent personal monetary crises require gap funding.

For the same making use of payday loan for bad credit from a direct lender is useful from online lenders.

All those having in their credit records loan repayment defaults are also eligible for affordable loan products without any fee for an intermediary.

With no hidden fees, these loan products are relieving for entrepreneurs dealing with less than average credit scores.

 

Description

Gaining business literacy, along with financial literacy, is the key for entrepreneurs for business success.