To continue the lingo series, we are looking at the letter B today.
When a startup is bootstrapping, it’s self-funded. A lot of new founders use a combination of personal income or savings, operating revenue of said business and/or resources from family and friends to get business started and keep it going. This can be achieved through early revenue generation, lean operations (typically in bootstrapped startups the founders take a low or no salary). The benefit of bootstrapping is that you don’t have to answer to investors, and you have full control of your company. The challenge is that you must be resourceful and attract paying customers early on.
Break even refers to the point when the revenue made by a business in selling products or services equals the costs involved in producing those as well as running the company. It is often used to determine what level of sales are necessary to cover the company’s total fixed costs.
A bridge loan is a short-term loan that helps a startup access money in between rounds of funding. It usually covers a period of two weeks to three years.
In simple terms, burn rate is how fast you are spending your money. It is the rate at which a company spends cash reserves to cover expenses and is usually expressed weekly or monthly. Investors are not very keen in putting their money where the burn rate is excessive, that is, where money is being spent quickly (burning through money quickly)
A bubble describes a timeframe in an economic ecosystem where an industry does not realize that it might be overvalued and over-inflated.
Business advisors might be investors, serial entrepreneurs, or seasoned experts in a specific field who provide guidance to startups in a variety of capacities. They are usually experienced and able to add value to your early stage startup by providing insights, sharing knowledge, etc.
B2B or B2C:
B2B (Business-to-Business) means selling products or services to other businesses. B2C (Business-to-Consumer) means selling products or services directly to the end users.
There you have it,
Five startup words starting with the letter B
Have any additions? Share in the comment section
Don’t forget to check back every week for new content specially curated to help, educate and teach you on your journey as a founder.
You can check out other expressions of Talemia HERE
Are you building a tech startup and want us to feature you or know someone who is?
Tweet at us: @talemiahq
Email us: email@example.com
Let us help you launch your business faster than you can. We are doing this for other African founders who have joined Buildr. Click HERE