Bootstrapping refers to a financing strategy in which founders build up their start-up primarily using their own funds and revenue they have generated themselves. In doing so, they initially forego external equity investment from, for example, business angels or venture capital funds.
Branding refers to the strategic creation and long-term development of a brand. The aim is to clearly position a company, product or service and make it stand out from its competitors.
The break-even point (BEP) refers to a company’s break-even point. At this point, the revenue generated covers all costs taken into account, meaning that neither a profit nor a loss is made. It can be expressed, for example, as the required sales volume, revenue level or point in time.
Bridge financing is a short-term financing option for companies that aims to cover immediate capital requirements until a long-term financing solution or the next financing round is secured.
The Build-Measure-Learn cycle is a repeatable learning process derived from the Lean Startup methodology. In this process, start-ups develop a simple solution, test it with real users and use the results to inform their next decisions.
The burn rate describes how quickly a start-up uses up its available funds. It is usually expressed as a monthly figure and indicates how much capital a company requires for its day-to-day operations whilst expenditure exceeds income.
Business angels (angel investors) are private individuals who invest their own capital in young, growth-oriented companies. They often have entrepreneurial experience and also support start-ups by providing specialist knowledge, strategic feedback and access to their professional networks.
The Business Model Canvas (BMC) is a strategic tool that enables companies to present and further develop their business model on a single page. It shows how a company creates value for its customers, delivers its services and generates revenue as a result.
A business plan is a structured document that sets out a company’s business idea, objectives and financial planning. It outlines the problem a start-up is solving, how it intends to attract customers, and the measures it plans to take to ensure long-term success.