Before Set Up The Agency of Mobile App Development
If you’re going to put up your own mobile app development agency, then you need to be aware of some terms so that you won’t be ignorant. Do not worry as I will provide you with some of the most important terminologies you need to be aware of.
- Acquisition- A business entity wants to acquire the controlling interest of another business entity
- Angel Fund- an Angel Investors meeting where the group will discuss matters pertaining to the startup
- Angel Investor- A person who is willing to fund a promising startup
- Assets- This is every resource that a company owns. There are 3 types of assets namely Fixed Assets, Current Assets, Intangible Assets
- Balance Sheet- This is a concise version of the company’s total assets, liabilities, and capital. This is usually based on a specified date.
- Bootstrapping- This is where the owner uses their own assets to help start a company. This is the usual route most entrepreneurs take
- Debt Financing- If the company is in need of funds, business owners will usually take this kind of loan. You have to know that you have to pay back the principal and the interest to the individuals that have invested and this doesn’t include any losing shares/assets
- IPO- Also known as the Initial Public Offering, this is where the company decides to sell some of their shares to the public
- Venture Capitalist- Also an investor. The venture capitalist will help manage the company’s funds as well as the other investors’ money as well. They are usually focused on getting high ROI, especially from exits or IPOs.
- Advisor- A person that guides a budding entrepreneur. They will teach you the ways
- B2B (Business-to-Business)- This is where a company transacts with another company
- B2C (Business-to-Consumer)- This is where a company transacts with the consumers
- Board of Directors- Also known as “the board”, this is a group that consists of various company shareholders and they will discuss important matters about the company. For instance, if the company requires a new CEO, that will be decided by the entire board
- SAAS- Also known as Software as A Service, this is where the company delivers a software that is usually hosted by a 3rd party provider and it is made accessible to all of their customers via the internet.
- Benchmark- an indicator of a company’s success. A good company always makes sure to surpass their set benchmark to provide a consistent quality service to its customers
- ROI- Also known as Return on Investment. It represents the profit that is gained to the capital invested in percentage
- Agile- This is working in terms of providing incremental updates so that the clients can see what is currently being worked on
- MVP- This is where the application is built only with the features that the client and the customers truly need.