Most Used words in Shark tank India?
Today we are going to talk about the most popular and trending show in India nowadays, there are the most used business and finance terms are used in this show. Most peoples like to watch shows but they do not understand some of the terms used in shark tank India shows, which is related to investing and finance.
Let’s see the Most used words in Shark tank India which are most important in the business and finance field, who regularly used in the shark tank India show.
What is Shark Tank India?
In shark tank India there are sharks that invest or buy some equity share from those whose businesses have the potential to grow in the future. So, peoples come to shark tank India to raise funds from sharks in exchange for the equity of their business.
let’s see business, finance, and investing terms most used in shark tank India.
What is Equity in the Shark Tank or in Business?
Equity means ownership of the organization or business. For example, you have bought a share of the company, that share you buy is called equity in the investing.
It means from buying a share of the company you buy equity in that company.
let’s understand by Example
There are five friends who start their own company. These five friends invest capital by 2 CR per each in their company. Their company has a total of 1crore share. It means as per their investment every person got 20 lakhs shares.
We can say that company’s 100% ownership has in the hands of its owner whose total value has 10 Cr because the company has 5 founders so each has 20% equity. Suppose they want to grow their business. it requires 5 Cr money.
They have two options the one is they can get on from bank. the second option is they can get money by selling them some equity to the investors.
If they want 5 Cr. Then it’s simple they need to sell 50% of their equity to the investors to raise the 5 Cr.
It means the company sells 50 lakhs share which is equal to the 50% ownership of the company. here 1% equity is equal to the 1 lakh shares.
What is Valuation in Business?
Valuation in the business is related to the ability of the company to earn profit in the future.
Then how are valuations is found?
There are two types to find valuation?
1- Past data
Performance data of the company till now.
It consists of Land, machine, cash, debtor, and net asset, all terms are considered to decide companies’ valuation.
2- Future based
This consists of all future growth perspectives and then decides valuation.
There are also other methods to calculate or predict the valuation of the company.
What is Revenue?
In the particular time after selling off all products units then amounts, we got that amount we called revenue.
for example, you have a company which makes pens. Your company sells 100 pens per 1Rs each unit in the 3 months. Then your revenue becomes 100rs. revenue also consist of the money you spend on the product for making and marketing Etc.
What is Net Profit?
Before understanding the net profit, we know what is gross profit.
Gross profits mean
Revenue – the cost of the product = Gross Profit, for example, you have a company that sells a product for RS 300 and the manufacturing cost of that product is Rs 100.
so, the company got RS 200 profit. This profit is called gross profit.
After deducting all expenses like renting, storing, transportation, etc. this value is called net profit.
What is ROI?
ROI means Return on investment.
Whenever you invest in any business then ROI is the most important parameter to decide to invest.
ROI determines the profit made on any investments which are related to its cost.
let’s see season 1 judges of shark tank India.
Shark Tank India Judges
This shark is the Co-Founder of the Boat.
This shark is the Founder and CEO of shadi.com
This shark is Executive Director at Emcure pharma.
This shark is the CO-founder of Mama Earth.
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