Starting a business 3: Business Plans

📚 Key vocabulary
bootstrapping — building a business using only personal savings and revenue, without external funding
seed funding — the initial capital raised by a startup to develop a product or prove a concept
Series A round — the first significant round of venture capital financing after initial seed funding
runway — the length of time a company can operate before running out of money at its current burn rate
burn rate — the rate at which a startup spends its cash reserves before becoming profitable
MVP (Minimum Viable Product) — the simplest version of a product with just enough features to satisfy early customers and gather feedback
pivot — a fundamental change in a startup's strategy or product direction in response to market feedback
scalability — the ability of a business model or technology to handle growing demand without proportional cost increases
exit strategy — a plan for how founders or investors intend to eventually monetize their investment in a company
angel investor — a high-net-worth individual who provides early-stage financing to startups in exchange for equity