Top 10 popular startup terms every finance enthusiast should know!

Top 10 popular startup terms every finance enthusiast should know!

1️⃣ Bootstrapping: Kicking off a business with minimal or no external funding, relying mainly on personal funds and revenue generated by the business itself. It’s the art of doing more with less!

2️⃣ Incubator/Accelerator: Programs designed to support early-stage startups with mentorship, resources, and sometimes funding, setting the stage for growth and success. Think of them as startup boot camps!

3️⃣ Seed Funding: The initial capital used to get a business off the ground. This early boost often comes from founders' personal savings, family, friends, or angel investors.

4️⃣ Product-Market Fit: Achieving a product-market fit means your product is meeting strong market demand—a critical milestone for any startup aiming for growth and sustainability.

5️⃣ MVP (Minimum Viable Product): A basic version of a product with just enough features to satisfy early customers and provide feedback for future development. It's all about validating the idea quickly and efficiently!

6️⃣ Pivot: Making a significant change in your business model or product strategy based on feedback and data. It’s about finding a more successful path when the original one isn’t quite right.

7️⃣ Burn Rate: The speed at which a startup is spending its cash reserves before it starts generating positive cash flow. Keeping an eye on the burn rate is crucial for survival!

8️⃣ Runway: The amount of time a startup has before it runs out of cash, calculated by dividing the current cash balance by the burn rate. It’s your financial countdown clock.

9️⃣ Churn Rate: The percentage of customers who stop using your product or service over a given period. Keeping churn low is key to sustained growth.

🔟 Valuation: Determining the current worth of a company based on its market potential, assets, and growth prospects. It’s the financial snapshot every investor wants to see.