■ SHARK TANK
BUSINESS TERMS & HOW BUSINESS WORKS
A Complete Guide for the SwiftMart Team
PART 1 30+ Key Business Terms Explained in Simple Language
PART 2 How a Business Actually Works — Step by Step
PART 3 What Happens Inside the Shark Tank
PART 4 Quick Revision Card
Note from ASB : Shark Tank looks confusing at first — people throwing big numbers, asking
weird questions, and making deals in minutes. But once you understand the language, it all
makes sense. This guide will teach you everything you need to watch Shark Tank like a pro —
and more importantly, think like a real entrepreneur.
CHAPTER 1
Key Business Terms
Every word the Sharks use — explained simply.
Before the Sharks even hear a pitch, they already have a mental framework of numbers and
concepts. If you don't understand the language, the show looks like magic. Once you do, you
realise it's just structured thinking about money, risk, and value. Read every term below carefully
— and remember the example, because examples make things stick.
01 Valuation MOST USED
Valuation is the total worth that a founder places on their entire company. It is NOT how much
money the company has made — it is what the founder BELIEVES the company is worth today,
based on revenue, growth, brand, and potential. The formula most commonly used on Shark Tank
is: Investment Amount divided by Equity Percentage = Valuation. So if someone asks for Rs 50
lakh for 10% equity, they are saying their company is worth Rs 5 crore.
Example: Ananya asks for Rs 10 lakh for 20% equity. That means she values her company at Rs 50 lakh
total.
KEY
02 Equity CONCEPT
Equity means ownership. If a company has 100% equity and you own 25% of it, you own a quarter
of the entire business. You get 25% of any profit, 25% of the value if it is sold, and you also carry
25% of the risk. Founders give away equity to investors in exchange for money. The more equity
you give, the more ownership you lose. This is why smart founders try to give as little equity as
possible.
Example: Rohan owns 60% equity, Priya owns 40%. If they sell the company for Rs 1 crore, Rohan gets Rs
60 lakh and Priya gets Rs 40 lakh.
03 Revenue FINANCE
Revenue is the total amount of money a business collects from customers. It is the first big number
— the GROSS amount before any expenses are removed. If you sold 500 notebooks at Rs 100
each, your revenue is Rs 50,000. Revenue does NOT mean profit. You could have high revenue
and still be losing money if your expenses are even higher.
Example: SwiftMart sold 1000 products at Rs 200 each. Revenue = Rs 2,00,000. But if costs were Rs
1,80,000 — the profit is only Rs 20,000.
04 Profit (Net Profit) MOST USED
Profit is what is left after you subtract ALL your expenses from your revenue. Expenses include:
cost of making the product, salaries, rent, electricity, marketing, packaging, delivery, and
everything else. Profit is the REAL number that shows whether a business is actually working. A
business that only makes revenue but no profit is just running in circles.
Example: Revenue Rs 5 lakh, expenses Rs 4.2 lakh. Net Profit = Rs 80,000. That is 16% profit margin.
05 Gross Margin FINANCE
Gross Margin is the profit you make just from making and selling the product — before you count
other costs like rent or salaries. Formula: (Selling Price minus Cost of Making) divided by Selling
Price, multiplied by 100. If you make a shirt for Rs 200 and sell it for Rs 500, your gross margin is
60%. The Sharks love high gross margins because it means there is room to spend on marketing
and growth and still make money.
Example: Shirt costs Rs 300 to make, sells for Rs 1000. Gross Margin = 70%. Very healthy!
INVESTOR
06 ROI — Return on Investment TERM
ROI tells you how much money you got back compared to how much you put in. Formula: (Profit
from Investment divided by Cost of Investment) multiplied by 100. If a Shark invests Rs 10 lakh
and eventually gets back Rs 40 lakh, the ROI is 300%. Investors always calculate this before
putting money in. They want the highest possible ROI for the risk they are taking.
Example: Invest Rs 5 lakh, earn back Rs 15 lakh. ROI = 200%. That means you tripled your money.
07 Royalty DEAL TYPE
A royalty is a deal where instead of taking equity, the investor gets a fixed percentage of EVERY
sale the company makes — forever, or until they recover a certain amount. It is like a toll booth on
every sale. Founders often dislike royalty deals because they reduce profit on every product
forever. Investors like it because it gives a steady income even if the company never gets sold.
Example: Shark gives Rs 20 lakh and asks for Rs 5 royalty per product sold until Rs 40 lakh is recovered. So
they get double their money back.
08 Patent LEGAL
A patent is a government-issued legal protection for an invention or unique product. Once you
have a patent, no one else can make, use, or sell your invention without your permission for a fixed
number of years. On Shark Tank, when a founder says 'we are patented,' it means their product is
legally protected and competitors cannot copy it. This makes the business much more valuable.
Example: A founder invented a self-cleaning water bottle with a unique mechanism. They patented it — now
no company can copy that exact mechanism.
09 Trademark LEGAL
A trademark protects your BRAND — your name, logo, tagline, or slogan. It is different from a
patent which protects an invention. A trademark means no other business can use your brand
identity. When you see the TM or (R) symbol next to a brand name, it means it is trademarked.
Trademark gives your brand legal ownership and exclusivity.
Example: SwiftMart registers its name and logo as a trademark. Now no other company can legally call
themselves SwiftMart or use a similar logo.
10 MVP — Minimum Viable Product STARTUP
An MVP is the most basic, simplest version of a product that still works and can be shown to
customers. The idea is to test whether people actually want your product BEFORE spending a lot
of money to build the full version. Most successful startups started with a very rough MVP. Airbnb's
MVP was literally just photos of one apartment posted online. The point is to learn fast, spend less,
and improve based on real feedback.
Example: SwiftMart does not build the whole dark store network first. First, we sell 10 products manually to
real customers to see what sells. That is the MVP.
11 Burn Rate STARTUP
Burn rate is how much money a startup SPENDS every month. If a company has Rs 12 lakh in the
bank and is spending Rs 2 lakh per month, the burn rate is Rs 2 lakh/month. This means they have
6 months of 'runway' before money runs out. Sharks always check burn rate because a company
burning money faster than it earns will soon be dead. A healthy company should have low burn
rate relative to revenue.
Example: Startup has Rs 10 lakh saved. Monthly expenses = Rs 1 lakh. Runway = 10 months. If they do not
earn revenue by then, they shut down.
12 Break-even Point FINANCE
The break-even point is the exact moment when total revenue equals total costs. Before
break-even, the business is losing money. After break-even, the business starts making profit.
Every business must cross break-even to survive. Smart founders know exactly when they will
break even, how many products they need to sell to get there, and have a plan to get there fast.
Example: Fixed costs Rs 30,000/month. Each product earns Rs 150 profit. Break-even = 200 products sold
per month. Sell 201 and you start profiting.
KEY
13 Scalability CONCEPT
Scalability means the ability of a business to grow BIG without the cost or complexity growing at
the same rate. A business that can serve 100 customers as easily as it serves 10 is scalable.
Software companies are very scalable — you build an app once and millions can use it. A
restaurant is less scalable because you need a new location, new chefs, and new equipment for
every city.
Example: SwiftMart's dark store model is scalable — once the system is built, adding a new city means
opening one more dark store, not reinventing everything.
INVESTOR
14 Angel Investor TYPE
An angel investor is a wealthy individual who invests their OWN personal money into a startup at
an early stage — usually in exchange for equity. They are called 'angels' because they invest when
the business is too risky for banks or formal investors. Most Shark Tank investors are angel
investors. They bring not just money but also experience, contacts, and mentorship.
Example: A retired businessman with Rs 5 crore in savings invests Rs 30 lakh in your startup for 15% equity.
He is an angel investor.
INVESTOR
15 Venture Capital (VC) TYPE
Venture Capital firms are COMPANIES that collect money from many rich people and institutions,
then invest that pooled money into startups with high growth potential. VCs invest much larger
amounts than angel investors — often crores to hundreds of crores. They take equity and expect
the company to grow very fast and be sold or go public within 5 to 10 years. VCs are not patient —
they want big exits.
Example: Sequoia Capital (a famous VC) invested in Byju's and Zomato early. They made massive returns
when these companies grew.
INVESTOR
16 Due Diligence TERM
Due diligence is the process where an investor deeply investigates a company BEFORE finalising
the deal. They verify revenue numbers, check bank statements, study the product, talk to
customers, check legal documents, and look for any hidden problems. On Shark Tank, when a
Shark says 'subject to due diligence,' it means the deal is not final yet — the investor will
investigate first.
Example: Shark says he will invest Rs 50 lakh but needs to verify the Rs 1 crore revenue claim first. He
checks bank statements and customer records. That is due diligence.
INVESTOR
17 Exit Strategy TERM
An exit strategy is a plan for HOW investors (and sometimes founders) will eventually get their
money out of the company — and hopefully much more. Common exits are: selling the company to
a bigger company (acquisition), going public through an IPO, or buying back the investor's shares.
Investors always think about exit before they invest, because without an exit, they can never
convert their equity into actual cash.
Example: Shark invests for 20% equity hoping the company will be acquired by Amazon in 5 years for Rs 100
crore. That is the exit plan.
18 IPO — Initial Public Offering BIG EVENT
An IPO is when a private company offers its shares to the GENERAL PUBLIC for the first time by
listing on a stock exchange like NSE or BSE. After an IPO, anyone can buy shares of the
company. This is usually the biggest exit event — founders and early investors become very rich.
But going public also means the company must follow many strict government rules and be fully
transparent.
Example: Zomato did an IPO in 2021. Before that, only investors owned shares. After the IPO, you and I
could buy Zomato shares on the stock market.
KEY
19 B2B and B2C CONCEPT
B2B stands for Business to Business — you sell your product/service to other companies, not
individual people. B2C stands for Business to Consumer — you sell directly to individual
customers. Most Shark Tank businesses are B2C. B2B businesses usually have fewer but larger
customers. B2C businesses have many small customers. The sales strategy, pricing, and
marketing are completely different for each.
Example: SwiftMart is B2C — we sell fashion and stationery directly to students and households. A company
that supplies packaging to SwiftMart is B2B.
20 CAC — Customer Acquisition Cost MARKETING
CAC is how much money you spend to bring in ONE new customer. Formula: Total Marketing +
Sales Spend divided by Number of New Customers. If you spent Rs 10,000 on ads and got 100
new customers, your CAC is Rs 100. A good business has a low CAC. If your CAC is higher than
what a customer pays you, you are losing money with every sale — which is a serious problem.
Example: SwiftMart spends Rs 5000 on social media ads and gets 50 new buyers. CAC = Rs 100 per
customer.
21 LTV — Lifetime Value MARKETING
LTV is the total revenue you expect to earn from ONE customer over their entire relationship with
your business — not just their first purchase. If a customer buys from you once a month at Rs 500
for 2 years, their LTV is Rs 12,000. The golden rule: LTV must always be HIGHER than CAC. If it
costs Rs 500 to get a customer but they only spend Rs 200 total — you lose.
Example: A SwiftMart customer orders fashion and stationery every month for 3 years at Rs 600/month. LTV
= Rs 21,600. CAC of Rs 100 is very profitable.
22 Licensing STRATEGY
Licensing means giving another company the RIGHT to use your product, brand, technology, or
idea in exchange for a fee or royalty. You keep ownership — they just pay to use it. On Shark
Tank, sometimes a Shark suggests licensing instead of building a full business, especially if the
founder has a unique patent but lacks business skills.
Example: You invented a unique zipper design. Instead of making bags yourself, you license the design to 5
bag companies who each pay you Rs 2 per zipper used.
23 Debt vs Equity Financing FINANCE
There are two main ways to raise money. DEBT financing means borrowing money from a bank or
lender — you must pay it back with interest, but you keep full ownership. EQUITY financing means
giving away a percentage of your company to an investor in exchange for money — you do not
repay it, but you lose some ownership. Most Shark Tank deals are equity financing.
Example: Bank loan of Rs 10 lakh at 12% interest = debt. Shark gives Rs 10 lakh for 15% equity = equity
financing. Both give you money but the consequences are very different.
24 EBITDA FINANCE
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortisation. It is a way to
measure a company's core operating profit — stripping out things like interest payments,
government taxes, and the accounting reduction of asset values over time. Investors use EBITDA
to compare different companies fairly, because it shows the real operational strength without those
variables.
Example: Company has Rs 10 lakh net profit but paid Rs 2 lakh in bank interest and Rs 1 lakh in tax. EBITDA
= Rs 13 lakh, which is the true operating strength.
25 Pitch SKILL
A pitch is a short, structured, and convincing presentation given by a founder to potential investors.
A great pitch covers: What is the problem? What is your solution? Who are your customers? What
are your numbers? Why is your team the right one? Why now? How much do you want and for
how much equity? The best Shark Tank pitches are clear, confident, and tell a great story.
Example: A founder has 60 seconds to explain what their company does, show the product, state the ask,
and make the Sharks want to invest. That 60 seconds is the pitch.
NEGOTIATIO
26 Counter Offer N
When a Shark is interested but does not like the founder's deal terms, they make a counter offer —
different equity %, different investment amount, or different deal structure. The founder can accept,
reject, or counter again. This back-and-forth negotiation is one of the most exciting parts of Shark
Tank. A smart founder knows their minimum acceptable deal and does not accept below it out of
desperation.
Example: Founder asks Rs 20 lakh for 10%. Shark counters: Rs 20 lakh for 25%. Founder counters back:
18%. They settle at 20%. That is a counter offer negotiation.
27 Profit Margin FINANCE
Profit margin is the percentage of revenue that becomes profit. Formula: (Net Profit divided by
Revenue) multiplied by 100. If you earned Rs 10 lakh revenue and Rs 2 lakh profit, your margin is
20%. Higher margin = more efficient business. Luxury brands have high margins. Grocery stores
have very low margins (1-5%) but make up for it in volume.
Example: SwiftMart earns Rs 500 per order, profit is Rs 75. Profit margin = 15%. That means for every Rs
100 earned, Rs 15 is actual profit.
28 Market Size (TAM, SAM, SOM) STRATEGY
TAM = Total Addressable Market (everyone who could possibly buy your product). SAM =
Serviceable Addressable Market (the portion you can realistically reach). SOM = Serviceable
Obtainable Market (what you can actually capture now). Sharks ask about market size to know if
the business can be BIG enough to matter. A great product in a tiny market is not investable at
scale.
Example: SwiftMart's TAM = all Indians who shop for fashion and stationery. SAM = Odisha students and
urban households. SOM = Class 4-9 students in 3 districts initially.
29 Bootstrapped STARTUP
A bootstrapped company is one that was built using only the founder's own money or company
revenues — without taking any outside investment. Bootstrapping shows that founders are
resourceful and committed. Many Sharks respect bootstrapped founders. However, bootstrapping
also means slower growth because you have less capital to expand quickly.
Example: A founder started a bakery with Rs 15,000 of personal savings, reinvested every rupee of profit,
and grew it to Rs 5 lakh/month revenue without any investor. That is bootstrapped.
30 Pivot STRATEGY
A pivot is when a company significantly changes its business model, product, or target customer
after discovering that the original idea is not working well. Pivoting is not failure — it is smart
adaptation based on real-world feedback. Some of the world's biggest companies pivoted.
YouTube started as a dating site. Instagram started as a check-in app. Knowing when to pivot is a
founder superpower.
Example: SwiftMart starts by selling fashion but discovers stationery sells 10x better in Odisha. Pivoting to
focus on stationery-first is a smart business decision.
CHAPTER 2
How a Business Actually Works
From zero to a real running company — step by step.
Many people think business is about having a great idea. But an idea is just 1% of the work. The
other 99% is execution — building, testing, selling, managing, growing. Here is exactly how a
business works from the very beginning to a stable, profitable company.
STEP 1 Identify a Real Problem
Every successful business solves a problem that real people have. Not a problem you imagine —
a problem you CONFIRM by talking to real people.
Bad idea: 'I think people would like a flying car.' Good idea: 'I interviewed 50 students in Odisha
and 43 of them said they can't find affordable quality study materials in Odia medium.' That is a
confirmed problem.
Before building anything, ask yourself: Does this problem actually exist? Is it painful enough that
people would pay to solve it? Are there already solutions, and if yes, why is mine better?
The Sharks always ask: 'What problem does this solve?' If the founder cannot answer clearly, the
Sharks lose interest immediately.
STEP 2 Develop Your Solution (the Product or Service)
Once you know the problem, you build a solution. This is your product or service. At the start, do
NOT try to build the perfect version — build the MVP (Minimum Viable Product).
Your MVP should be simple enough to build quickly, real enough that people can use it, and
functional enough to test whether people actually want it.
Spend time on: What does the product do? Who exactly is it for? How is it better than what already
exists? What should it cost to make and sell?
SwiftMart's MVP was not building 10 dark stores. It was selling 3 stationery products to 20 Odisha
students manually and seeing if they reordered.
STEP 3 Understand Your Costs and Pricing
You need to know exactly what it costs to make/deliver your product. These costs split into two
types:
FIXED COSTS: Costs that stay the same every month regardless of sales. Examples: rent,
salaries, software subscriptions, electricity.
VARIABLE COSTS: Costs that go up when you sell more. Examples: raw materials, packaging,
delivery charges, manufacturing per unit.
Once you know your total cost per product, you decide your SELLING PRICE. Your price must
cover costs AND leave profit. A common mistake is pricing too low because you want to be
affordable — but if you lose money on every sale, selling MORE makes things WORSE.
STEP 4 Make Your First Sales
This is where most people stop — they keep 'preparing' and never actually sell anything. Your first
sale is the most important thing you can do.
Your first customers teach you more than any planning session. They tell you what they love, what
is missing, what they would pay more for, and what they would tell their friends about.
Do not wait for a perfect product, a beautiful website, or a big team. Sell manually. Call people.
Message people. Knock on doors if you have to. Get money from a real customer.
On Shark Tank, the first question is often: 'How much have you sold?' A founder with Rs 5 lakh in
real sales is 10x more credible than one with zero sales and a perfect presentation.
STEP 5 Track Your Numbers
From day one, track every rupee. Know your revenue, your expenses, your profit, your number of
customers, and your CAC and LTV.
Business without numbers is just guessing. You need to know: Am I making money? Where is
money being wasted? Which products sell most? Which customers come back?
Use a simple spreadsheet. Write down every sale and every expense. At the end of every month,
calculate your net profit or loss.
This habit is what separates real entrepreneurs from people who 'play business.' Even SwiftMart
at Class 9 stage tracks every experimental sale.
STEP 6 Build Your Team
No business is built alone. You need people who complement your skills — if you are great at
ideas and marketing, you need someone great at operations and finance.
A good team has clear roles. Everyone must know exactly what they are responsible for.
Confusion in roles leads to things falling through the cracks.
Hire (or bring on co-founders) based on skill AND character. One wrong person in a small team
can destroy the culture and momentum. Always have written agreements — who owns what, who
does what.
SwiftMart has ASB (CEO), Animesh (CTO), Saunak (CFO), Aryash (COO), and fashion heads —
each with a defined role, not overlapping responsibilities.
STEP 7 Build Systems and Processes
A business that depends entirely on ONE person is not a business — it is a job for that person.
Real businesses have SYSTEMS: step-by-step processes that anyone trained can follow.
Systems include: How do we handle an order? How do we onboard a new supplier? What
happens when a customer complains? How do we track inventory?
When you document your processes, you can train others, scale to new cities, and take a day off
without everything falling apart.
Ask yourself: If I disappeared for a week, would the business still run? If the answer is no, you
need better systems.
STEP 8 Market and Acquire Customers Consistently
A great product no one knows about will fail. Marketing is how you get customers — and getting
customers consistently is what makes a business stable.
Marketing channels include: social media (Instagram, YouTube), word of mouth, school
partnerships, flyers, events, influencers, and online ads.
Track your CAC. Know which channel brings customers most cheaply. Double down on what
works, stop what does not work.
The best marketing is a customer who tells a friend. Build a product so good and an experience so
smooth that customers become your marketing team automatically.
STEP 9 Cross Break-even and Reach Profitability
The goal of every early-stage business is to reach the break-even point as fast as possible. Before
break-even, you are burning money. After it, you generate real cash.
Break-even requires you to know your fixed monthly costs and your profit per sale. Divide fixed
costs by profit per unit = number of units you must sell monthly to break even.
Once you cross break-even, every additional unit sold is pure profit. This is when the business
starts to feel like it is working.
Do not increase expenses until you are profitable. Keep the team lean. Avoid fancy offices,
expensive tools, or unnecessary costs until the core business is strong.
STEP
10 Scale — Grow the Business Intentionally
Scaling means growing the business in a controlled, profitable way. NOT growing fast and hoping
it works — growing systematically with a plan.
You can scale by: serving more customers in the same area, expanding to new cities, adding new
products, or selling through new channels.
Before scaling, make sure: the core business is profitable, your systems can handle the extra
volume, and you have the capital to fund the growth.
This is where investors come in. If you can show a Shark that your model works, is profitable, and
is scalable — they will give you the money to grow 10x faster.
STEP
11 Manage Cash Flow — The Life Blood of Business
A business can be profitable on paper but still die because of poor cash flow. Cash flow is the
timing of money coming in versus money going out.
Example: You supply products to a school and they pay after 60 days. But your supplier wants
payment in 10 days. You are profitable — but you have a cash flow gap that can kill you.
Always know: How much cash do you have TODAY? How much is coming in this month? How
much is going out? What is your runway if sales stop?
The Sharks often ask about cash flow because it reveals how well a business is really being
managed versus just looking good on a revenue chart.
STEP
12 Reinvest, Improve, and Build for the Long Term
Every rupee of profit should be treated as a tool for growth — not a reward. In the early stages,
reinvest profits into better products, better marketing, or better systems.
Keep improving your product based on customer feedback. The best businesses never stop
getting better. They keep asking: What do our customers love? What frustrates them? What do
they wish we had?
Build relationships with suppliers, partners, investors, and mentors. Business is a long game. The
people you treat well today become your biggest advantages tomorrow.
Remember: the goal is not just to start a business. The goal is to build a business that is still
growing and valuable 10 years from now.
CHAPTER 3
What Happens Inside the Tank
How to watch Shark Tank like a pro entrepreneur.
THE PITCH The founder walks in and has roughly 60-90 seconds to present
1
their company. A great pitch covers: the problem, the solution,
the target customer, key numbers (revenue, profit, growth), and
the ask (how much money for how much equity). The Sharks are
evaluating the founder AS MUCH as the business — confidence,
honesty, and deep knowledge of their own numbers are critical.
THE SHARKS After the pitch, the Sharks fire questions. Common questions:
2
ASK QUESTIONS What is your revenue? What is your profit margin? How did you
get to this valuation? Who are your competitors? Do you have a
patent? What will you do with our money? Founders who
hesitate, give vague answers, or get the math wrong lose
credibility instantly.
NEGOTIATION If one or more Sharks are interested, they make offers.
3
Sometimes multiple Sharks compete, which is good for the
founder (they can play them against each other). A Shark might
say: 'I'll give you the money but I want more equity or a royalty.'
The founder must decide: Is this deal good for me long-term? Am
I giving away too much?
THE DEAL (OR Either a deal is struck and both sides shake hands, or all Sharks
4
NO DEAL) say 'I'm out' and the founder leaves empty-handed. Even with a
handshake, the deal is subject to due diligence — the actual
paperwork comes later. Many TV deals fall through after the
cameras stop, when the real investigation begins.
AFTER THE If the company gets a Shark's backing, they get money,
5
SHOW mentorship, and connections. But the Shark also has real
ownership now. They will monitor the business, give advice, and
expect returns. The founder must now execute — which is where
the real work begins.
Pro Tips for Watching Shark Tank Like an Entrepreneur
✓ Watch the MATH first — does their valuation make sense? Is the margin believable?
✓ Watch the FOUNDER — are they confident? Do they know their numbers cold?
✓ Watch the NEGOTIATION — who has more power? When does the founder hold firm vs
accept?
✓ After each episode, pause and ask: Would YOU invest? Why or why not?
✓ Keep a notebook. Write down every business term you hear. Look up anything unfamiliar.
CHAPTER 4
Quick Revision Card
Read this before every Shark Tank episode!
Term One-Line Definition
Valuation Total worth the founder thinks the company is worth
Equity Ownership percentage in a company
Revenue Total money that came IN before any expenses
Profit Money left AFTER paying all expenses
Gross Margin Profit on the product alone, before other costs
ROI How much you earn back on money you invested
Royalty A small % of every sale paid to a partner/investor
Patent Legal protection so no one can copy your idea
Trademark Legal protection of your brand name/logo
MVP Simplest version of your product you can test
Burn Rate How fast a company spends its money monthly
Break-even The point where revenue = costs (no profit, no loss)
Scalability Can this business grow BIG without falling apart?
Angel Investor A rich individual who invests early for equity
Venture Capital A firm that invests large amounts for equity
Due Diligence Detailed check before finalising an investment
Exit Strategy Plan to sell the company and cash out
IPO When a company goes public and sells shares to everyone
B2B Business sells to other Businesses
B2C Business sells directly to Customers
CAC Cost to acquire one new customer
LTV Total revenue expected from one customer over time
Term One-Line Definition
Licensing Letting someone use your idea in exchange for money
Debt Financing Borrowing money that must be repaid with interest
Equity Financing Giving away ownership in exchange for investment
EBITDA Earnings before interest, tax, depreciation, amortisation
Pitch Short, convincing presentation to investors
Counter Offer Investor changes the deal terms, founder can accept/reject
Shark The investor on Shark Tank looking for good deals
SwiftMart Team Education Series | Prepared by ASB | For internal use only — not for distribution | 2025-26