Shark Tank is a business reality TV show that started in the United States in 2009. The show has come up with an Indian version and it has become the ‘talk of the town’ in every conversation, especially among the youth. For those unfamiliar with the show’s premise, Shark Tank allows prospective entrepreneurs to pitch their business ideas and models to a panel of judges known as Sharks in order to persuade them to invest in their operation.
While the show has attracted the curiosity of people from all walks of life, it can be a little difficult for those who are unfamiliar with the business and finance world. If you’re in the same boat as me, don’t worry. Let’s take a look at some of the business phrases used by the Sharks in the show and decode them.
- D2C: D2C refers to Direct-To-Consumer where the consumers do not deal with an intermediary but directly with the company. The businesses provide the service and product directly to the consumers. D2C are mostly brands that sell online. Popular examples of this in India are – Sleepy Owl, BoAT among others.
- Equity: The amount of capital invested or owned by a company’s owner(s) is referred to as equity. The difference between a company’s liabilities and assets on its balance sheet is used to calculate equity. The value that would be restored to a company’s shareholders if all of the assets were liquidated and all of the debts were paid off is referred to as equity. Basically, asset minus any liability is equal to Equity.
- EBITDA: EBITDA – Earnings Before Interest, Taxes, Depreciation, and Amortization, is a financial performance indicator that can be used instead of net income in some situations. Simply put, EBITDA is a profitability measure. Many people use EBITDA to assess the worth of a company since it focuses on the financial consequence of operations.
- HORECA: It is a short form for Hotel-Restaurant-Café.
- Patent: A patent is an exclusive legal right granted for an invention for a product or an unique technique that offers a new technical solution to a problem or provides a new way of doing something in general. This intellectual property right prohibits others from making, using, or selling the patented product.
- QSR (Quick Service Restaurant): A quick service restaurant (QSR) is one that serves food that takes minimal time to prepare and is served promptly. QSR restaurants are known for their standardised, modular, and efficient procedures, which allow them to cut order fulfilment lead times while maintaining the high level of quality that customers expect. Examples – McDonalds, Domino’s, KFC, etc.
- ROI (Return on Investment): Return on investment (ROI) is a financial metric that is expressed as a percentage and is used to measure how profitable an investment is in comparison to its costs. It helps to measures how much profit a given investment has generated in relation to its cost.
- Revenue: The value of all goods and services sold by a company in a certain period is referred to as revenue. Your income statement shows how much money you’ve made. Profit is not the same thing as revenue. If the costs of producing revenue surpass the revenue generated from sales, you’ve lost money rather than made it.
- Gross Revenue & Net Revenue: Gross Revenue is the earnings before you deduct your expenses and the Net Revenue is your earnings after you subtract your expenses.
- Revenue Run Rate: “What’s your predicted Revenue Run Rate?” is a question we heard a lot of times in the Shark Tank show. Revenue run rate, which is also known as sales run rate or annual run rate, is a method that helps in predicting or estimating the revenue of the company in the coming year based on previous year’s earned revenue. This process helps an investor understand the company’s projections and take a more informed decision.
- SKU (Stock Keeping Unit): A Stock Keeping Unit, or SKU, is a unique number provided to a product for inventory management and tracking purposes. To put it another way, a SKU is a unique identification issued to each product to make record-keeping easier and more efficient.
- Valuation: The overall value of a firm when a round of fundraising is completed, depending on the amount raised against the equity shares, is referred to as valuation. If a firm sells ten percent of its stock for 1 lakh, its 100 percent will be marked as 10 lakhs, implying that the company’s overall valuation after this fundraising will be 10 lakhs.
- Supply Chain: A supply chain is a network that connects a company’s suppliers in order to manufacture and distribute a certain product or service. Producers, vendors, warehouses, transportation companies, distribution centers, and retailers are all part of the supply chain.
- Turnover: Turnover means the total sales a company is able to make over a given period of time.It could be a quarter year, a half-year, the end of the calendar year, or the conclusion of the financial year. Turnover is a vital indicator of a company’s success. It is another term for Gross Revenue.
I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.
IF YOU ARE INTERESTED IN PARTICIPATING IN THE SAME, DO LET ME KNOW.
Do follow me on Facebook, Twitter Youtube and Instagram.
The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.
If you would also like to contribute to my website, then do share your articles or poems at email@example.com
In the year 2021, we wrote about 1000 Inspirational Women In India, in the year 2022, we would be featuring 5000 Start Up Stories.
Leave a Reply