Internet Marketing Glossary: A List Of Digital Terms You Need To Know – 2020 Ready (Part 4: Business)

This Internet Marketing Glossary is a comprehensive digital marketing jargon glossary.

Business

Bootstrap (Business)

In business, bootstrapping refers to starting or running a business with little or no money. This simply means setting up a business without involving venture capital firms, banks or even angel investment.

In this situation, an entrepreneur might rely on plowing money earned from customers back into the business. It usually involves starting out hard without any external financial help.

Stages of bootstrapping:

  1. A company that relies on bootstrapping usually makes use of seed money from personal savings or by getting help from close relatives and friends. Part-time hobbies like blogging which an individual can take as a second stream of income can be set up by means of bootstrapping. Here, the individual may maintain his or her daytime job while nurturing the other business.
  2. The second stage as was earlier reflected on involves making use of money that customers paid to a business. In this situation, the growth of such a business may be quite slow because of operating expenses, but eventually, the business might pick up and be able to fund itself and make a profit for the owner. Although bootstrapping in business may appear risky, it is a better way of staying out of debt especially when it is run with personal savings.

Minimum Viable Product (MVP)

Minimum Viable Product (MVP) involves developing a technique that is used to introduce a new product with basic features into the market for the purpose of getting feedbacks from early adopters to enhance customer satisfaction.

The feedbacks gotten from the customers are used in developing the final product. This term became popular since a writer and consultant on startups, Eric Ries, began using it.

Minimum viable product provides marketers with the right research and information they need to either improve on a particular product, make some reductions on the features, or leave it as it is. In fact, it helps them know the strengths and weaknesses of such product.

3 things that MVP must have:

  • Enough value to attract people and compel them into buying or testing out the product.
  • It must showcase mouth-watering features that early adopters will be interested in.
  • It must create room for feedback to be provided to help improve on the product.

An example is where you have a mobile phone company like Apple attracting early adopters with, let’s say – iPhone 8. Here the customers are promised to get some features on the phone free when they are among the first to buy the phone.

 

1 thought on “Internet Marketing Glossary: A List Of Digital Terms You Need To Know – 2020 Ready (Part 4: Business)”

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