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Terms every aspiring entrepreneur should know

haydenlee.io

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Re: Terms every aspiring entrepreneur should know

#21

Post by rdrey »

jacquesm wrote: post #16
haydenlee wrote: post #12

Earlier quoted context omitted.

That part isn't the advice. Are you encouraging people to not admit their mistakes?

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…

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?

Re: Terms every aspiring entrepreneur should know

#22

Post by greenyoda »

rdrey wrote: post #21
jacquesm wrote: post #16

Earlier quoted context omitted.

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…

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.

Re: Terms every aspiring entrepreneur should know

#23

Post by greenyoda »

csbrooks wrote: post #14
aaron987 wrote: post #6

Earlier quoted context omitted.

I've got one. Entrepreneurs need to understand the difference between capital growth and cashflow.

Can you elaborate? Or post a good link? 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"?

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.

Re: Terms every aspiring entrepreneur should know

#25

Post by aaron987 »

csbrooks wrote: post #14
aaron987 wrote: post #6

Earlier quoted context omitted.

I've got one. Entrepreneurs need to understand the difference between capital growth and cashflow.

Can you elaborate? Or post a good link? 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"?

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.

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