Shark Tank India is the talk of the town nowadays. It’s a business reality television series that broadcasts on Sony Entertainment Television in Hindi, India. The program is an Indian adaptation of the famous American series Shark Tank. It depicts business owners pitching their ideas to a group of sharks or investors who choose whether to fund the venture. However, many people need help understanding their business terms. The India Saga explains the business terms used in the show.
Valuation: A business’s or an idea’s estimated worth is known as valuation. Several variables determine it, including risk, competitive advantage, growth potential, market size, and revenue.
Cash Flow: The quantity of money that enters and leaves a business over time is known as cash flow. Cash revenues are subtracted from cash expenses to compute it.
Equity: It is the ownership portion of a company or concept. Typically, equity is stated as a percentage or the number of shares.
Margin: The amount that separates a product or service’s cost from its selling price. Usually, a ratio or percentage is used to express it.
EBITDA stands for earnings before interest, taxes, depreciation, and amortisation. It measures a business’s operating performance, excluding non-cash and non-operating expenses.
Gross profit is the difference between the revenue and the cost of goods sold (COGS) of a business. It shows how much money a company makes from selling its products or services before deducting other expenses.
Net profit: It is the difference between the gross profit and the operating expenses, interest, taxes, and other costs of a business. It shows how much money a company makes after paying all its expenses.
Return On Investment (ROI): The net profit ratio to the initial investment of a business or an idea. It shows how much money a company or an idea earns for every rupee invested.
Net Profit Margin: It is the ratio of the net profit to the revenue of a business. After paying all the expenses, it shows how much revenue is left as a profit.
An Offer and A-Counter Offer: An offer is a proposal to buy or invest in a business or an idea at a specific price and under certain conditions. It is usually made by an investor or a buyer to an entrepreneur or a seller. A counter-offer responds to an offer that proposes different or modified terms. An entrepreneur or a seller usually makes it to an investor or a buyer.
Equity Dilution: It is the reduction in the percentage or value of the equity of a business or an idea due to the issuance of new shares or the conversion of existing shares. It is usually caused by raising capital from investors, granting stock options to employees, or merging with other businesses.