Image by: Salford
By Alexa Hughes
Running a business or brand online is not always the easiest thing to do. Besides capital, motivation, and a clear vision you also need to know a few niche things about this type of business model. Here is a list of words and terms every female should know when plotting out a path to success with an online venture.
#1) Burn Rate
The burn rate is the negative amount of money that a new business is requiring to stay in business. It’s an important term to know when dealing with investors because an investor generally won’t be interested in a company with a high burn rate, since it might not be able to stay afloat. It is quite common however in new companies that have room for growth.
#2) Angel Investor
An angel investor is someone who’s willing to invest in a new company in exchange for stock or part ownership in the company. Not many business end up getting angel investors, but if you have big plans for growth you might get lucky and fine one. The thing to consider however is if the angel investor signs on as part owner then they will want to be involved in the business decisions, so it’s giving up some of the control.
#3) Limited Liability Company (LLC)
An LLC is an alternative to a business becoming a full on corporation. An LLC is officiated by the state and ensures that the partners are protected against liabilities that involve the company at large.
#4) The Service Corps Of Retired Executives (SCORE)
SCORE is a nonprofit company that offers counseling to people who are aspiring entrepreneurs. For low prices anyone can take courses and webinars to expand their knowledge on all things related to small business. They are a partner with the small business administration so you can be confident that the information that they have to share will be valuable no matter what stage of starting or running a business you’re at.
#5) B2B versus B2C
B2B is short for business to business as opposed to business to customer, and both have to do with sales. So, if your business sells to other business and not directly to other customers you would be a B2B business. Naturally they differ in important ways so the abbreviations help to keep the information you need easy to find.
#6) Comparative Advertising
Comparative advertising is advertising where you directly compare your own brand to another one that might be in a similar market. You may have seen this where companies drop hints that they’re better than another similar brand, or claim that they’ve done surveys where people like their product the best.
#7) Cost Based Pricing
Cost based pricing is a way of coming up with prices that ensure that you’re covering the expenses that it requires to keep your business going. This can be necessary in some cases to avoid getting in and staying in debt.
#8) Market Based Pricing
Market based pricing on the other hand is a tactic that looks at other current prices in the industry and makes prices based on similar products that are already out there. Target based pricing is often necessary or wise when there is established competition that you’re dealing with, because people are already familiar with the costs of similar products and won’t be likely to shell out tons of extra cash when they don’t know whether your product is better or not.
#9) Target Marketing
When a company has a specific demographic of people that they are hoping to buy their products they might rely on target marketing. This can work well if you know that your desired demographic actually wants your products, but can not go so well if you’re going after the wrong market.
#10) Relationship Marketing
Relationship marketing on the other hand is the act of developing relationships with potential customers that can last the longterm, instead of solely focusing energy on getting new customers. This can pay off well in certain cases because longterm customers can not only be very profitable, but they also tend to give great referrals that can add to your customer base that way.
Are you in the process of starting your own business (or even in the dream stages) and looking to educate yourself as much as possible? Let us know if any of these terms were new and useful to you!