entrepreneurship_notes

Capital Expenditure

Involves the purchase of fixed assets meant for long-term use, such as property or machinery.

Revenue Expenditure

Involves daily operational costs like staff salaries and premises costs.

Internal Sources of Finance

Funds generated within the business, such as retained profits or owners’ equity.

External Sources of Finance

Funds raised from outside the business, like crowdfunding or equity financing.

Bootstrapping

Self-funding from personal savings or income.

Crowdfunding

Raising small amounts of money from many people, typically online.

Equity Financing

Selling shares of the company to raise funds.

Venture Capital

Investment from professional investors expecting high returns in growing startups.

Financial Management

Planning and monitoring financial resources to achieve long-term goals.

Revenue Model

Explains how a business generates income and profits from goods or services.

Unit Sales Model

Revenue generated from the sale of products or services, commonly used by retailers.

Advertising Revenue

Earnings obtained from ads placed on platforms or content.

Data Revenue

Income from selling valuable data to third parties.

Intermediation

Earnings from facilitating transactions between buyers and sellers.

Licensing

Earnings from allowing others to use intellectual property.

Franchising

Selling rights to others to operate under the business's name.

Subscription

Ongoing fees for continuous access to a product or service.

Professional Revenue Model

Charging for time and expertise, common for consultants and lawyers.

Utility and Usage Pricing

Charges based on the usage of a product or service.

Freemium Model

Offering basic services for free while charging for premium features.

Competition-led Pricing

Aligning pricing with competitors' prices.

Loss Leader Pricing

Pricing products below cost to attract customers.

Introductory Offer

Discounted pricing provided for initial users.

Price Skimming

High pricing for new products with minimal competition.

Psychological Pricing

Pricing based on the customer’s perception of value.

Bundled Pricing

Offering a group of products/services at a discounted rate.