Welcome to the ultimate startup glossary - your comprehensive reference book for all relevant terms related to the world of startups! Whether you are just at the beginning of your entrepreneurial journey or in the middle of the startup development process, you will find everything you need to know here.
Pull marketing aims to create a demand for products or services that actively attracts customers. Content marketing, social media or a strong brand identity are often used to gain the interest and trust of the target group. The aim is to get the customer to search for or buy the product independently.
Push marketing refers to marketing strategies in which companies actively promote their products or services to customers. This is done through advertising, direct mailings, sales promotions or sales activities. The aim is to attract the attention of the target group and encourage purchases, often through direct contact or sales incentives.
Private equity refers to capital that is invested in unlisted companies. Funds or investors acquire shares in order to realise increases in value through active co-determination. Private equity includes both growth financing and buy-outs and aims to generate long-term returns through strategic development, optimisation and subsequent exit.
The backlog comprises all unfinished orders, requirements or tasks that have accumulated in a system or process. It serves as an overview of the outstanding workload and is an important control instrument in production, project management or IT. A well-maintained backlog enables prioritisation, capacity planning and transparent reporting.
The payback period indicates how long it takes for an investment to be covered by the cash flows generated from it. It is calculated by accumulating the annual cash flows until they reach the initial investment. A shorter amortisation period is considered less risky.
Lead time refers to the time that elapses between the order being placed and the final delivery of a product or service. It includes all steps along the value chain - from procurement to production to delivery. Short lead times improve efficiency and customer satisfaction.
The profitability index (PI) is an economic indicator that shows the relationship between the capital value of an investment and the costs incurred. A value greater than 1 indicates that an investment is economically viable. The PI helps to objectively compare different projects - especially when resources are limited.
The Employee Value Proposition (EVP) describes a company's overall promise to its employees - i.e. the mix of remuneration, development opportunities, corporate culture, meaningfulness and benefits. A strong EVP helps to attract, motivate and retain talent in the long term by clearly communicating what employees can expect.