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.
A joint venture is a contractually agreed co-operation between two or more companies in which resources, expertise or capital are pooled in order to operate a joint project or business segment.
Deal breakers are decisive factors or conditions in negotiations which, if not met, can lead to the failure of an agreement or investment.
Zero-based budgeting is a budgeting method in which every expenditure has to be justified from scratch - regardless of the previous year's figures. Instead of simply updating existing budgets, the planning process starts from scratch. The aim is to utilise resources more efficiently and avoid unnecessary costs.
Price sensitivity is the measure of how strongly the purchasing decision of consumers or business customers changes when the price of a product or service changes. High price sensitivity means that even small price changes have a significant impact on demand behaviour - for example, through reluctance to buy or switching to the competition. In markets with low price sensitivity, other factors such as brand, quality or service are more important. Understanding the target group in terms of price sensitivity is crucial for pricing strategies, discount campaigns and product positioning.
Deal flow refers to the continuous stream of investment opportunities that reach investors and venture capital companies for evaluation.
aily Active Users (DAU) refers to the number of unique users who use a product or service within a day, while Monthly Active Users (MAU) refers to the number of unique users who are active within a month.
Entrepreneurial spirit refers to the initiative and determination to start new ventures and turn innovative ideas into successful business models. This characteristic is essential for start-ups and entrepreneurs who want to survive in dynamic markets. The term emphasises the importance of creativity, willingness to take risks and perseverance in the entrepreneurial process.
White labelling describes a business model in which a product or service is produced by a manufacturer but sold by another company under its own brand. This allows the selling company to market a finished product as its "own solution" without having to develop or produce it itself. White label products are particularly common in e-commerce, software solutions or consumer goods and enable rapid market entry and individual brand positioning.