If you want to start a startup, then first consider B to B and B to C business

There were many such words on people’s tongues during the Corona epidemic. “Startup” is one of them. You’ve probably heard this word a lot lately. My startup, its startup, its startup, and so on. The term “startup” refers to the start of a new business or job. Many people in Corona lost their jobs, and many of them started their own businesses.

Shark Tank India, a new TV show about startups and business, debuted on television for the first time.

Shark Tank India is a remake of a popular American reality show. People on this show come up with their own business ideas and try to persuade the show’s panel to invest money in them. Whose idea is the best, or does the shark (the entire panel) approve? Sharks invest in order to help him grow his business.

The show piqued the interest of people from all walks of life, but it proved difficult for those with little or no experience in the world of business and finance.

Today in the news of need, we’ll go over some common business / startup terms that you should be familiar with before starting your own business.

Business to Business (B2B)

is a phrase that means “business to business.” Let’s take a look at an example. Assume you work for a soap company. Now, if this company sells its soaps to various hotels instead of customers, and these hotels then distribute the soaps to the customers staying at these hotels.

This type of business is known as B to B, or business to business. Instead of selling to customers, the product or service is sold directly to another business. The second business hotel is located here.

b to c Business:

It refers to the relationship between a company and its customers. company, firm, or startup sells its product or service directly to customers in this scenario. Let’s look at an example to help us understand. B to C business is one in which a soap manufacturer sells its products directly to customers.

Valuation is the process of determining the economic worth of a business or company. This information can be used to estimate how much this company will cost. When we go to sell our goods, for example, we estimate the price based on the quality. The goods are then sold following the final valuation.

  • When do you use it?
  • To sell a business.
  • For joint ventures or ownership.
  • for the purpose of taxation

Pre-Revenue – Pre-revenue isn’t a type of income or expense; rather, it’s a rough estimate of how much money you could make in your business.

Margin or profit margin is the difference between the cost of producing a product and the profit earned after selling it.

Assume that a company costs Rs 2.5 to make, pack, and deliver chocolates, plus all other expenses, and that the company sells its chocolates for Rs 5. As a result, the product’s profit margin will be 50%.

Another investor’s stake in a company is referred to as equity. When you tell someone about your company or business idea, you tell them that you are willing to give them a certain percentage of equity in exchange for their money.

Let’s say you said you wanted a one-crore investment. In exchange, I will give the front a 10% stake in the company. Simply put, it means that the person who invests the money will own a 10% stake in your company.

Entrepreneurs are people who start their own business and take on all of the risks associated with it, from management to profit and loss.

Angel Investor – Angel investors provide financial assistance to small businesses and entrepreneurs. Private investors, seed investors, and angel funders are all terms used to describe them. The majority of angel investors are drawn from the entrepreneur’s family and friends. Angel investors may also invest funds in a company only once, in order to help the company overcome its initial problems, get off the ground, and grow its business.

Overhead – Overhead is the cost of expenses incurred in addition to the cost of making or delivering an item, such as warehouse rent, office rent, someone’s legal fee, or any insurance. Overhead is the term for such expenses.

Imagine you invented a pen and had it patented. You own the copyright, logo, and trademark for that pen, but a third party wants to sell it to customers. As a result, he’ll have to pay you, the true owner, a portion of the sale price of each pen piece. This is referred to as royalty.

Scalability – If you own a pen manufacturing company, consider how much growth you can expect, how much more or less sales you can expect, how much profit you can expect, and how and how much customer demand you can meet. All of these factors influence a company’s scalability.

The word “purchase order” (PO) means “agreement.” A person purchasing a product is agreeing to purchase a certain number of units from the businessman in front of him.

Patent – A patent is a legal document that allows you to stamp your name on any product or service. Assume you created a pencil. In his own name, he filed a patent for that invention. Until then, no one has this pencil.

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