angel investors. Angels are “accredited” investors (who meet certain SEC criteria for net worth and income. Angels usually have little personal relationship with the founders. Usually they are investing in startups as part of their overall investment portfolio.
business owner vs. entrepreneur. The key difference between an entrepreneur (of any type) and a small business owner (which are often confused) is one is searching to find a business model that works (entrepreneur) while the other is managing a business on a proven model (small business owner).
crowdfunding. A method of funding innovative product ideas that are too early for investors. In this method, innovators reach out to like-minded supporters, early adopters and fans, who are enthusiastic about backing early stage ideas. The crowd not only contributes money to develop the product but offers something just as valuable: early market validation for the product, and a chance for the entrepreneur to build reputation and credibility.
elevator pitch. An elevator pitch is a business pitch or sales pitch told as a brief synopsis for the purpose of gaining the listener’s interest in the hopes they will request more information or request to see the complete pitch.
engagement. 1. Any physical action that can be taken with digital content; e.g. a video view; a click or scroll; a like, share or retweet; reading a web page. 2. The practice of identifying, listening to, interacting with and activating digital audiences.
freelance consultant. Someone who works independently to provide a service to a client. Typically consultants have control over how, when and where they perform the work. They are not considered employees. They are also subject to additional taxes that an employer normally pays.
initial public offerings. When a company (and investors) first sell shares to the public (e.g. the stock market), the company can raise significant amounts of money to fund operations, growth, or new products. This also offers the investors (and founders) a chance to sell some of their stock for (sometimes significant) cash.
measurable objective. The specific, measurable metrics you will track to know if you have successfully executed your strategy. (You could say, our objective is to attain X percent user growth in a certain time period, for instance.)
membership. A subscription model under which the content can either be free or paid, but users who purchase a membership receive perks and bonus materials, exclusive access to supplemental materials and so forth.
prospectus. A prospectus is a detailed summary of a business plan put in writing. If a company wishes to sell public stock or to offer other financial instruments for sale, a complete prospectus includes many financial disclosures and the price of shares and number of shares to be offered.
small business owner. Someone who owns a for-profit, U.S. company that is independent and not dominant in its industry, according to government NAICS codes. “Small business” is a specific classification of business that may be eligible for some government contracts. Whether a business qualifies is based on “size standards,” which take into account profits, number of employees and other factors.
venture capitalists. A VC is a professional fund manager. They aggregate investment funding from large institutions then make investments in high-growth companies for potential high returns. VCs need their funds to make an extraordinary return on investment.
- "Small Business Size Standards," SBA.gov, https://www.sba.gov/contracting/getting-started-contractor/make-sure-you-meet-sba-size-standards. ↵