Shark Tank India has made many Indians curious about the working of a business. From what goes into establishing a startup to understanding how one prepares for investment rounds, Shark Tank has been teaching a lot lately.
It is easier for the commerce students to understand some of the technical jargon, however, others might not be as easy for others. So here are some of the most used business and investment terms used in Shark Tank India.
1. EBITDA
In a recent episode, we came across this term, EBITDA, used by one of the contestants. The sharks later explained what the term actually stands for. EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization, is a measure of a company’s overall financial performance and is used as an alternative to the net income in some circumstances.
2. Revenue Run Rate
Revenue run rate, or annual run rate or sales run rate, is a method of estimating upcoming revenue over a longer time period, which is usually one year, based on previously earned revenue.
3. Burn Rate
Burn rate is the term that is used to describe the rate at which a company is losing money before generating positive cash flow from operations.
4. Equity
This is probably the most used term on Shark Tank. Equity is the ownership of assets that may have debts or other liabilities attached to them.
5. Turnover
Turnover is the rate or the amount of time that it takes for a store to sell all of its inventory, it is usually calculated on an annual basis.
6. Company Valuation
When following up with investment-based shows, one comes across the word company valuation the most. A business valuation is a general process of determining the economic value of a whole business or company unit, explains Investopedia.
7. Supply Chain
A supply chain is a system that moves within organizations, people, activities, information, and resources that are involved in supplying a product or service to a consumer.
