The world of entrepreneurship has grown so large that it now requires both young and old entrepreneurs to constantly educate themselves and keep themselves informed about the latest development in the entrepreneurship world.
For aspiring entrepreneurs, one of the first things that you are always advise to do by your financial adviser is to get a business plan and also to familiarize yourself with the business and entrepreneurial words (Language of the entrepreneurs). So today, we will be taking a look at some entrepreneurial words that will help you throughout your journey in the entrepreneurial world.
ASSET: According to investopedia, the word ‘asset’ means a resource with economic value that an individual, cooperation or country owns or control with the expectation that it will provide future benefit. One of the goals of entrepreneurs is always to acquire asset that will generate cash flow in the future. The knowledge of asset is very useful for entrepreneurs, especially those in real estate (that’s knowing whether a property is an asset or not )
LIABILITY: A liability can is a resource with low or no economic value which removes more income from the owner than it has generated (That’s the owner is not gaining from it). Aspiring entrepreneurs should beware of this because acquiring liability on your first start can lead your downfall living you with little or no chance of bouncing back.
CAPITAL: Atleast 70% of individual around the world is familiar with this word. To a lay man, capital means the money used to start up a business in order to generate cashflow. Well this is true but to an entrepreneur, its not just the “money” used to generate cashflow, its also means a “goods” used to generate cashflow. Knowing the sufficient amount of capital that can be used to kick off your business will also give you more insight about the business you are trying to start up.
BALANCE SHEET: It is a financial statement that shows a total description of a company’s asset, liability and shareholders’ equity at a particular range of time (it could be months or years). Been a great entrepreneur requires you knowing how to read your balance sheet in order to know whether the legs of the pyramidal shape of your business is strong. It also gives the investors who wants to invest in your business the insight of how the financial activities of your company has been going.