Interest level of viewers has continued to grow as more and more episodes of business reality TV series Shark Tank India have aired. The Indian show is based on the original American series of the same name that ran for 13 seasons since 2009.
For those who are not aware about the show’s concept, Shark Tank offers a platform to aspiring entrepreneurs to pitch their business ideas and models to a panel of judges aka Sharks and convince them to invest money in their venture.
While the show has piqued interest in people from all walks of life, it can be a tad bit confusing for those who have little to no knowledge about business and finance world. If you too find yourself in that same boat, fret not. Let’s learn the meaning of some of the business terms used in the show by the judges.
Revenue Run Rate
“What’s your predicted Revenue Run Rate?” is a question often asked during Shark Tank. Revenue run rate, which is also known as sales run rate or annual run rate, is a method that helps in predicting or estimating the revenue of the company in the coming year based on previous year’s earned revenue. This process helps an investor understand the company’s projections and take a more informed decision
The valuation of a business considers the company as a whole and determines its exact worth based on various objectives such as sale value, partner ownership, taxation among other things.
Supply Chain consists of various steps and procedures from the start to the end. In the business world, supply chain refers to a system of people, organisations, activities, information, and resources that are involved in supplying service or a product to a consumer.
D2C refers to Direct-To-Consumer where the consumers do not deal with a middle party. The businesses provide the service and product directly to the consumers. D2C are usually brands that are sell online.
Equity is among the most used terms used by the judges in Shark Tank India. In the finance world, equity basically means ownership of assets that may have debts or liabilities. Equity is subtracting liabilities from the value of the assets.
Turnover is a company’s total sales that they are able to make over a given period of time. Turnover is different from profit.
Royalty are payments made to an owner or investor of a product or property in order for another individual or party to use or sell it. This could be in the form of patent, copyright, or trademark.