Shark Tank is the kind of show we should appreciate. No doubt it gave us lots of memes but for some people it familiarized them with terms like Equity, Market Value, Valuation, Assets, Liability, Revenue, Margin, Royalty, Patent, Trademark, Copyright.
Check out this thread 👇🏼👇🏼
Equity: If I’m looking for $250,000 for a 25% stake in my business. The 25% stake is the equity that the shark would get if they agreed to that deal. Equity represents ownership of the company.
Market Value: The highest amount that someone is willing to pay for a product (as well as the lowest amount that a seller is willing to sell at).
Valuation: The valuation of the company tells you how much the company as a whole is worth.
Assets: are the items your company owns that can provide future economic benefit.
Liabilities: are what you owe other parties.
In short, assets put money in your pocket, and liabilities take money out!
Revenue: any income source from a company’s business model.
Margin: it shows how much money from every sale of a product that the business keeps.
Royalty: Payments made to an investor/owner of a product or property in order for another party to use/sell it.
For example, the investor may be paid a royalty of $2 per product sold. If the product sells for $10, then the investor would receive $2 each time someone buys it.
Patent: A form of intellectual property on an invention. This means that the owner of the patent can exclude anyone else from making, using, selling, and importing that invention. No one can copy the patented product!
Trademark: Another form of intellectual property but for a recognizable word, symbol or design that identifies a product or service. This could be a brand name, product name or tag line.
Proprietary: a term referring to ownership in an idea and the fact no one else can copy you.