This article might be for you - if you are in the entrepreneurship ecosystem and at the beginning of your entrepreneur journey and if you often come across some terms in the conversations.
B2B: Standing for business-to-business, B2B is the commercial transaction processes between two companies - the company takes the place of an individual customer that we know. When two companies specify each other as customers, it brings about B2B, generally used in the business world.
B2C: Meaning business-to-customer, B2C aims at direct reach to the customer. The company directly sells its products to the customers. There is no need for other intermediaries (wholesalers, etc.).
C2C: Representing consumer-to-consumer, C2C is a model of interpersonal sales - in contrast to B2C and B2B. There is no company or intermediary. As an individual, you sell your product again to an individual in this model.
Boot-Strapping: The entrepreneur builds their company with the capital they own, with no external investor. Since the entrepreneur funds their company with their own means, they will not have to allocate or give a share to any investor.
Incubator: Apart from being the first stage entrepreneur investor, it also provides support such as financial & mentor services, business networks. Incubators own a certain share percentage from the entrepreneur for the services they provide. They function as a bridge between investors and entrepreneurs. The business incubation process follows the same stages in every city and country for those stepping into entrepreneurship.
Venture Capital: Venture Capital, often abbreviated as VC, refers to venture capital companies. VC funds entrepreneurs with powerful ideas but unable to cash themselves up because of insufficient financial means. The risky part is whether the startup provided with an investment fund will be favored in the market.
Growth Hacking: Growth Hacking aims to achieve the highest performance in a short time with the growth aim, testing the entrepreneur with certain methods in the pre-project process.
Innovation: Perhaps among the most popular terms today, innovation is a concept that covers all the processes to develop a new or improved product, service, or production method.
Social Entrepreneur: An entrepreneur whose goal is to implement solutions to society and fund their share of profit to this end.
SWOT Analysis: It is a strategic analysis map to identify strengths, weaknesses, opportunities, and risks that show all aspects of your company. You can effectively position your company and take action for one step further through the SWOT Analysis.
UX (User Experience): Used in the new product & service formation, UX means user experience. Its goal is to create long-term value for the long-term development of user satisfaction.
Seed Funding: It is translated into Turkish as "Çekirdek Yatırım". It is the initial small-scale investment that the startup will receive in the venture round.
SEO (Search Engine Optimization): The process of improving a company website ranking among the search results as well as its performance.
SaaS (Software as a Service): We have heard many times, the entrepreneur states that their startup is SaaS-based. Well, what is SaaS? Software as a service, in other words, SaaS, helps the user to connect and use cloud-based apps through the internet. Microsoft Office 365 is one of the examples.
Business Model Canvas: The strategic management template that forms the 9 building blocks of a business idea or those of a business. You can develop new products and maintain existing ones through Business Canvas. 9 blocks include sections such as customer segments, revenue streams, unique value propositions, problem, solution, cost structure, alternatives, channels, resources, and collaborations. The canvas you put down your business ideas will make it easier for you to review your plan and see everything as a whole.
Early Stage: The product available in the early stage is put on the market. The product performance begins to be tested in the market. Another be-all and end-all at this stage is to grow the customer base. The feedback is invaluable. Pivoting at an early stage is important so that cost loss can be kept to a minimum.
Pitch: The entrepreneur's presentation to introduce their startup to the investor. Apart from the income and expenditure account that informs the investor, it covers the information about the customer segment and team members. A Pitch must be compact but with maximum impact. There is no need for long pages. It can be in formats such as pdf, ppt. The points that can interest the investor are in this presentation. Of course, the unity between the presenters is another important factor. The investment is, at heart, made to the founders, the team, as well as the idea itself.
Pivot: Meaning a direction change, Pivot is to make a change in the product following the entrepreneur feedback as long as the main focus is stable. For this, changing the business plan or model can be an example. Recommended in cases where competitor analysis is not properly carried out and when profit margin decreases. The ultimate goal is to draw an effective product roadmap.
MVP (Minimum Viable Product): In other words, a product that has been created with just enough features of your prototype. It can immediately be improved following the feedback given by early customers whose aim is to put the product on the market.
Exit: You must have heard "exit" a lot if you are in the startup ecosystem. Startup A exited. Well, what does actually market exit mean? Why does this term have such a place in the ecosystem? Market exit is actually the level that the entrepreneur will try to reach the seed stage. The aim is always to bring the startup idea to life. The investment processes begin. The seed A, B, C... The entrepreneur and the investor leave the startup that has achieved the desired aim. Apart from their entrepreneurial ecosystem success, the entrepreneur who exits can build a new startup with the capital they receive and even become an investor.
Cansın Meltem Kalaycı
Digital Marketing & Ecosystem Assistant Specialist