10 Commonly Used Shark Tank Terms And Their Meaning Audience Must Know

Shark Tank India is now one of the most-watched programs in India. From its concept to the entertaining judges, everything is praised by the Indian audience except a few Shark Tank terms. Valuation, D2C, Equity, and such more words are used frequently which puzzles every novice viewer. Not anymore!

We are describing the meaning behind all the common business terminologies used on the show so that you can watch it without inconvenience.

10 Shark Tank Terms Everyone Must Be Familiar With

1. Valuation

When the Shark Tank India judges ask contestants’ about their company’s valuation, they are simply referring to its economic value. In other words, they want to know it’s worth or value. This will help them get an overview of the company, evaluating opportunity costs, its strength, weakness, etc…

Also Read: Who Earns More? Know The Net Worth Of Shark Tank India’s Seven Judges

2. Equity

One of the most used Shark Tank terms is Equity. As the term suggests, it is associated with equality but it’s not. Equity in business language means the ownership of an asset excluding all the debts and liabilities.

Still not clear? Let’s learn from an example. Suppose you bought a car worth Rs 5 lakh but you owe50% of the amount as debt, then the car’s value as an equity is 50% i.e. Rs 2.5 Lakh. In other words, equity is value of total assets subtracting the total number of liabilities on it.

3. Supply Chain

This one might be easy! It is basically a set of network that includes every individual, organization, resource, and activity that serves the final service or product to the customer.

4. Revenue Run Rate

Whether it’s first or 12th episode of Shark Tank India, judges do not take any decision of investment without knowing the revenue run rate of contestants’ project so what does it mean.

It is the revenue of a company or asset assessed for the upcoming years that indicates how good or bad the company will perform. In short, it’s a performance indicator that helps one identify how much one can earn by investing in the company.

You may hear different words in place of revenue run rate, annual run rate or sales run rate. Both are same and depend on the previous earnings of a company.

5. Royalty

If you are aware of NFT, this won’t sound alien to you and it is exactly the same. It is a certain amount (fixed) paid periodically to the product’s creator or patent owner by any user or third party.

Also Read: 10 Funniest Indian Shark Tank Memes You Would Find Relatable

6. D2C

India is a fastest growing country in terms of D2C as more and more brands, startups, and companies are following this model. It was a $33.1 billion market in 2020 and would turn a $100 billion in 2025 as per reports.

The figure clearly shows D2C model is highly in demand, so what exactly it is. It’s a model where brands or companies sell their products or services directly to the end customers without any intermediaries.

Lenskart, BoAt, Mamaearth, and many more are brands operating on this model.

7. Turnover

We bet everyone is aware of this word used on Shark Tank India, if not? Here’s the answer
Turnover is nothing but a certain amount a company gets or makes during a specific period of time from their products. It is also known as company’s income or gross revenue and can be calculated for a full calendar year, half-yearly, or quarterly.

This is again an important factor that helps one measure how well the company is doing, Is it close to the goals or lagging? Don’t confuse turnover with profit as both sound same but are completely different.

8. Capital

Capital is one of the most important components of any business. Without it, you can’t even think of starting a business?

It refers to money or liquid assets that helps industry operates its day-to-day functionalities and support its growth in future. Capital is divided into four parts, trading capital, debt, working capital, and equity.

Then there is human capital which includes a number of people required to perform those functions.

Also Read: 5 Best Government Schemes For Small Businesses

9. Retailers

A retailer is another word popular at Shark Tank India show. These are the people who offer their products and services to the consumers directly. However, they are neither the manufacturers nor wholesalers.

Walmart, Best Buy are its example.

10. QSR

If you have watched the episode where a lady came up with idea of selling frozen momos, you must have heard the term ‘QSR.’ Its full form is Quick Service Restaurant, and as the name implies any food outlet labeled as QSR is a fast-food restaurant.

McDonald’s, Domino’s, Subway are a few popular QSRs that are doing well in this industry.

Hope your business vocab has improved with these Shark Tank terms and now you can enjoy the show better.