Many tend to think that the skill of being an entrepreneur comes naturally. However, you have to be equipped with the necessary sills that are required for you to be in a good position to run the business and for better results. The skill of entrepreneurship may come naturally in most individuals and it is your duty to utilize the same so as to maximize your revenue. Some of the basic knowledge that a good entrepreneur should have are the terms that are used in a business. This will help you to know what is being spoken of once you have an encounter with some of your clients and investors. The following are some of the terms that you should have some good knowledge about and their definitions.
1. Limited Liability Company.
This is some type of partnership that has an added advantage. This is because in a limited liability company, the members have full limited liability which is well protected. This is best for you to know so that you can be able to make an acute decision before the start of your entrepreneurial journey.
2. Angel investor.
Most of the entrepreneurs tend to come across this word but they do not have any knowledge about what it actually means. An angel investor is basically a type of investor who is willing to provide you with the necessary assistance that you need while starting a business with the aim that in future they will have some joint ownership over the same. An angel investor is the perfect person to look for in the case that you do not have the required capital to start your business.
New term to most of the intrapreneurs who are beginning their activities. An intrapreneur is a person who helps you to achieve your goals by converting your idea into realistic products. All you have to do is to present the idea to them and they will ensure that they have done this.
An incubator helps an entrepreneur to acquire business leases at a cheaper price unlike in other cases. Services such as secretarial, insurance and many more. Most business incubator services are offered by the company at an affordable price in which the beginner entrepreneur can afford.
This is a system of some qualified entrepreneurs known as service corps of retired executives. They provide aspiration and motivation to the beginner entrepreneurs. You can consult on the various pressing issues that may be affecting you in your business or firm and they will provide you with the necessary ideas that will suit you best.
7. Burn rate.
This is the computation of the negative cash flow in a given company. In moist cases the burn rate is calculated monthly or at the end of a given financial year. It is very important that you avoid having high values of the negative cash flows to place your business at a good position. However, you may find that the burn rate at the start of your organization is very high but with time this reduces and will be minimal with time.