STARTER SPEAK GLOSSARY
Vision: What do you imagine?
Innovation: How do you imagine your vision working?
Creativity and Imagination: Intelligence having fun (Albert Einstein)
Pain Point: What problem needs solving?
Value Proposition: What problem does your idea solve?
Mission: A written declaration of your company’s core purpose
Purpose: What is the meaning of your company in the world
Feedback: Response from others in answer to your questions
Industry Analysis: Research on the industry your business is in.
Market Opportunity: How does your business fit into the industry, and how does it serve consumers?
White Space: An empty space for your business to fill in the industry and in the greater market.
Network: The group of people you know who can help you develop your business.
Business Plan: The outline you will write to help others understand your vision for your business, and how it works in the world.
Iteration: Changes to your plan that move it forward.
B to B: Business to Business: relates to your target audience and how you make money. Does your company serve other businesses?
B to C: Business to Consumer: relates to your target audience and how you make money. Does your company serve consumers?
Spreadsheet: an Excel Worksheet that helps organize data you collect.
STEP THREE :
Elevator Pitch: Your vision, its mission and purpose, articulated in 30 seconds or less
Market Research: Research you conduct to support your business’ value
Feedback Loop: The exchange of feedback and how it affects the business you are building.
Primary Research: The obvious, direct impact research that tells you key things about your business and the market you are entering.
Secondary Research: The next level of research which helps you answer less obvious, but important questions for your business’ growth.
Data Analysis: How you understand the research you have conducted as it applies to your business.
Synthesis: How you connect that understanding of the research you have conducted to the actual build of your business.
Scale: The potential for your business’ growth.
Pivot: A change in direction for your business.
Operating Agreement: Legal Document that supports the way your company operates
Corporate Organization: Is your company an LLC or a Corporation?
LLC: Limited Liability Corporation
Corporation: A company in which you have shares and for which you have a board
Trademark: Helps to protect your vision and company mission
Equity: The Shares that represent the investment in your company
Shares: The value of that equity
Executive Team: The leaders of your company
Early Employees: Employees that join your business early in its formation, who are sometimes granted profit shares in your business.
Board of Advisors: The advisors to your company
Financial Model: the spreadsheet that shows expenses, income, cash flow, and a balance sheet for your company over a 3- 5 year period
Assumptions: Best guesses on expenses, income, and cash flow.
Pro-forma: The summary of expenses and income for each year that you have modeled. You use this in your investor power point presentation.
Capital: The money you use to build your business
Cap Table: The current value of your business and how many shareholders are invested.
Prototype: a tangible example of the product of your business.
Assets: The items of value that generate the business of your company.
Liabilities: your company’s debt
CAPEX: The business building block items on which you expend capital.
COGS: the cost of goods sold
EBITDA: Earnings before interest, taxes, debt are adjusted
P/L: Profit and Loss
Exit: What happens for your shareholders and for your founders when you sell your company.
Brand Voice: This is your company’s personality in the world
Brand Promise: This is how every action your company takes lines up with its personality
Brand Brief: A document that communicates the do’s and don’ts of your brand.
Target Market: The audience and consumers you hope will have affinity for your brand
Corporate and Brand Culture: How your brand translates into the way your company works inside and out.
Public Facing: Using your brand and culture to serve as the basis for your interaction with your target market and the greater economy.
Pitch Deck: the 10 -12 page document you present to investors to make the case for your business.
Angel Investor: an investor who is part of a network of other angels investing in early stage companies
Convertible Note: a low risk type of debt for early investment that converts into equity when a company gets fully capitalized.
Friends and Family: the first people you approach for investment (usually with a convertible note).
Series Seed: the very first round of funding after a Convertible Note, which includes outreach to individual and angel investors. The average contribution to a seed investment is approximately $50,000.
Series A, B, C: These are more formal rounds of investment wherein you can begin to take institutional funds from venture and family offices.
Venture: The most expensive, institutional investment you will take for your company.
Dilution: As more investment comes into your company, the pieces of the pie are made smaller and smaller to accommodate the influx of capital. This is not necessarily a bad thing, however. Wouldn’t you rather have 5% of $100 million than have 50% of $5 million? The answer is YES.
Crowd funding: popular online funding (think kickstarter)
Revenue: The money your company makes
Expenses: The money your company spends
Preferred Return: This investment is paid back first, before other investment is paid back.
Units: Equity broken into equal shares or units of stock
Strategic Investment: an investment by a person or entity seeking a majority share of your company
Oversight: How decisions are made according to your Operating Agreement
Board of Advisors: The people who make the big decisions for your company (usually fiduciary and planning)
Subscription Documents: the investment papers required for the Series A, B, AND C
Managing Members: The co-founders and owners of a company organized as an LLC.