Just had a brainstorm on others inclusions, though they may be too much.
You could add some these in the future:- convertible notes, options, employee pools, Debt v Equity Funding, down round, acqui-hire, dead pool, IPO, Startup Curve
I have another suggestion: narrow down your target audience. I don't think "every entrepreneur" needs to know these; "every tech entrepreneur" or "every startup entrepreneur" would be more accurate.
Cash flow is what it sounds like: the money flowing into and out of your business. Your company could have a million non-paying users (with the number doubling each month) and a market value of a billion dollars, but if you don't have enough money in your corporate checking account to pay your salaries, rent, web hosting and other expenses, your company is dead.
Pretty much what greenyoda said. Capital growth refers to the value of the company itself, while cashflow relates to the day-to-day income and expenses needed to run the company. They aren't necessarily correlated with each other.
For example, a niche website can provide a lot of cashflow by selling an e-book or something, but it has limited potential for capital growth. There are only so many people who will buy your e-book, and there is a very low barrier to entry.
On the other hand, a biotech startup has massive potential for capital growth if they found the cure for HIV or something. But until they get FDA approval, they won't have much if any income. Investors might give the company a high valuation because of its long term potential, but it's not the best choice of business if you want a quick income.
User versus customer. A customer pays you, a user uses your application. Customers can be users, but users aren't necessarily customers. Finally, many people (entrepreneurs and VCs alike) will confuse these two simply to make it sound like you have more people paying for your service than the general populous understands.
The difference between incubators and accelerators - an incubator is usually subsidised serviced office space for businesses that are just starting. It's really just an office. There's nothing about an incubator that helps the business grow besides the low cost.
An accelerator is a much more clearly defined programme of events and mentor-ship with the benefits of an incubator being wholly secondary. These days you're probably not going to get on to an accelerator unless you're already some way along with your business (tech largely built, got some traction, maybe revenue), and you need help taking it from something small and growing slowly to being something that has explosive growth (10% a week is optimal).
EDIT: I'm using the typical UK definitions there. It could be different in other places.
Depends what you categorise as writing. Sure, few of us are successful authors or journalists, but many solicitors, doctors and business people are probably largely authors of works in their own right. It just generally doesn't pay to be a writer for writings sake.
On the other hand very few people outwith programmers would benefit from that level of programming ability, nevermind that many would argue very few programmers should actually categorize themselves as engineers.
>but of course I'd just nod in agreement so I didn't look like a noob... admit it, we've all been there
and had to stop. That's the worst possible thing you can do! The rest of the article could be full of amazing advice but I'll never know cause it's too hard to read while I'm shaking my head this violently.
I think you missed an opportunity there. The advice should be 'don't do this, it's better to admit to being a noob and asking for explanation rather than to hold a conversation using words you don't know the meaning of lest you pass up an opportunity to learn something.'.
There is no such thing as a stupid question.
This reminds me of a conversation I overheard long ago in public transport where two kids were arguing (loudly) about what was the faster computer, Okidata or Brother.
At this point I would typically google, but let me ask: I have never heard of Okidata or Brother. Could you explain how this thread reminded you of this conversation and could you describe Okidata and Brother, please?
Okidata and Brother are two brands of printers, not computers. The point of his story is that the kids were talking about stuff they didn't have a clue about, which would sound stupid to anyone who did know about it. Someone would look equally stupid throwing around business terms whose meanings they were ignorant of.
"Pro tip: since these essays are kinda long, I use the app Pocket to download the essays and listen to them next time I'm catching the train/bus/<em>hyperloop.</em>" <-- you sir, are going places.
So if I download to Pocket does Pocket also play them back like an audiobook type thing? I've looked at the Pocket website and it's about saving for reading later, doesn't say anything about listening? I'd love to be able to save stuff to listen to in the car for example...
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[ 3.3 ms ] story [ 63.9 ms ] threadJust had a brainstorm on others inclusions, though they may be too much.
You could add some these in the future:- convertible notes, options, employee pools, Debt v Equity Funding, down round, acqui-hire, dead pool, IPO, Startup Curve
Thanks for this list!
I'm guessing the issue isn't "what is the difference" but "why does it matter, and when do they get confused with each other"?
For example, a niche website can provide a lot of cashflow by selling an e-book or something, but it has limited potential for capital growth. There are only so many people who will buy your e-book, and there is a very low barrier to entry.
On the other hand, a biotech startup has massive potential for capital growth if they found the cure for HIV or something. But until they get FDA approval, they won't have much if any income. Investors might give the company a high valuation because of its long term potential, but it's not the best choice of business if you want a quick income.
An accelerator is a much more clearly defined programme of events and mentor-ship with the benefits of an incubator being wholly secondary. These days you're probably not going to get on to an accelerator unless you're already some way along with your business (tech largely built, got some traction, maybe revenue), and you need help taking it from something small and growing slowly to being something that has explosive growth (10% a week is optimal).
EDIT: I'm using the typical UK definitions there. It could be different in other places.
Oh, please.
After all, even though 90%+ of the population can read and write, few are writers.
On the other hand very few people outwith programmers would benefit from that level of programming ability, nevermind that many would argue very few programmers should actually categorize themselves as engineers.
>but of course I'd just nod in agreement so I didn't look like a noob... admit it, we've all been there
and had to stop. That's the worst possible thing you can do! The rest of the article could be full of amazing advice but I'll never know cause it's too hard to read while I'm shaking my head this violently.
Ask questions!
There is no such thing as a stupid question.
This reminds me of a conversation I overheard long ago in public transport where two kids were arguing (loudly) about what was the faster computer, Okidata or Brother.
http://researchtrep.com/research/trep-terms/