Benchmarking
Benchmarking involves comparing a startup with competing companies. The aim is to work out how the processes in your own company compare to the competition and what you can learn from them.
Beta Test
Beta testing is the second test phase of a product. It is used for a certain period by part of its target group before it is made available to the broader market. Based on the feedback, short-term changes can be made before the product is presented to the public.
Blue Ocean Strategy
The Blue Ocean strategy attempts to create a new market that better suits the needs of customers and makes old business models of rivals obsolete. The streaming provider Netflix is a successful example and has made conventional video store models obsolete.
Blueskying
Blueskying is a term for a very optimistic and frequently unrealistic business plan. Such a presentation can give the impression that you have not thought through your plan carefully and can cause scepticism among potential investors.
Bootstrapping
Bootstrapping involves founders who use only their own capital and money from private sources, with no external funding.
Break-Even Point
When a startup reaches break-even, it stops losing money and starts making as much money as it spends.
Bridge Loan
A bridge loan is used to bridge funding gaps, e.g., when a start-up needs to bridge a period between two major investments. A bridge loan can take the form of a shareholder loan or a convertible loan.
Brownfield
A brownfield is an area with vacant property such as old factories or office buildings. These properties can be of interest to startups looking for office space. The advantage of brownfield sites is that they often already have a well-developed infrastructure. Such areas are often well connected to public transport, access roads and have an intact water supply. The use of brownfield sites can cut time and expenditure.
Burn Rate
The burn rate is the amount a startup spends per month. It can be used to calculate how long a startup remains liquid. If a company receives €500,000 in funding and has a burn rate of €50,000 per month, it can operate for 10 months.
Business Angel
Business angels are experienced entrepreneurs who support a startup. In addition to financial resources, they also bring their personal experience and a network to help the startup succeed.
Business Plan
A good business plan is essential for convincing investors of an idea. It contains information that explains the business idea.
Buyout
In a buyout, most of a startup is purchased by an investor or investment group. As a result, the new shareholder gains control of the company and can easily restructure it or sell it later for a profit.