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The Founder's Glossary

Every term, in plain English.

46 terms of building and running a business in India — two lines each, with a note on where every one actually matters in your journey. [Expanding toward the full 80-term set.]

A

Angel Investor

An individual who invests personal capital in very early companies — usually before institutions will. Often the first outside money on a cap table.

AoAArticles of Association

The internal rulebook of a company — how directors are appointed, how shares move, how decisions are made. Filed at incorporation with the MoA.

Where it matters: Company Registration
Authorized Capital

The maximum share capital a company may issue, declared at incorporation. Raising it later is possible but involves a filing — declare sensibly now.

Where it matters: Company Registration

B

Bootstrapping

Building on revenue and personal funds instead of investment. Slower, but every decision stays yours.

Break-even

The point where revenue first covers total costs. Investors expect the calculation; founders are usually surprised by it.

Where it matters: Investor Readiness
Burn Rate

Monthly net cash outflow. Divide your bank balance by it and you get your runway — the most honest number in a startup.

C

CACCustomer Acquisition Cost

Total sales and marketing spend divided by customers won. The number that decides whether growth is an engine or a leak.

Where it matters: Accelerator
Cap TableCapitalization Table

The ledger of who owns what percentage of the company. Clean cap tables raise money; messy ones explain why some don't.

Churn

The rate at which customers stop buying. Retention work is almost always cheaper than acquisition work — churn is where to look first.

CINCorporate Identification Number

The 21-character ID the MCA assigns at incorporation, appearing on every official document your company files thereafter.

Where it matters: Company Registration
Compliance Calendar

The schedule of statutory filings and payments your entity owes through the year. Ours arrives with every incorporation, in plain English.

Where it matters: Company Registration
CRMCustomer Relationship Management

The system of record for every lead and customer interaction. Implemented well, nothing falls through; implemented badly, it's data entry.

Where it matters: CRM Implementation

D

DINDirector Identification Number

A lifetime identification number every company director must hold before appointment. Obtained during incorporation.

Where it matters: Company Registration
DPIIT RecognitionDepartment for Promotion of Industry and Internal Trade

Government recognition of a startup under Startup India — unlocking tax benefits, easier compliance, and credibility. Free to obtain.

Where it matters: Start a Business
DSCDigital Signature Certificate

The cryptographic signature used to sign government filings electronically. Required for directors before incorporation can be filed.

Where it matters: Company Registration
Due Diligence

The investigation an investor or acquirer runs on your company before committing. Clean books and filed compliance are most of passing it.

E

EBITDAEarnings Before Interest, Taxes, Depreciation & Amortization

Operating profitability before financing and accounting choices. A common shorthand for 'is the core business making money?'

Equity

Ownership in the company, expressed in shares. Everything you grant — to co-founders, employees, investors — comes from the same 100%.

ESOPEmployee Stock Ownership Plan

A pool of equity reserved for employees. Practical only in a Pvt. Ltd. structure — one reason funding-bound founders choose it.

Where it matters: Entity selection

G

GSTINGST Identification Number

Your 15-character GST identity. Required to issue tax invoices and claim input credit — usually the first registration a business actually feels.

Where it matters: GST Registration
GSTR FilingsGST Returns

The periodic returns (monthly/quarterly) every GST-registered business files. Missing them accrues late fees silently — automation or outsourcing pays for itself here.

Where it matters: Accounting & Bookkeeping

I

Input Tax CreditITC

The GST you paid on purchases, credited against the GST you collect on sales. Properly kept books are the difference between claiming it and donating it.

Where it matters: Accounting & Bookkeeping
IPIntellectual Property

The intangible assets — name, mark, code, content — that competitors can copy if unprotected. Trademarks are usually a new business's first IP filing.

Where it matters: Trademark Filing

K

KPIKey Performance Indicator

The handful of numbers that actually indicate whether the business is working. If everything is a KPI, nothing is.

L

Lead Magnet

Something genuinely useful offered in exchange for contact details — a checklist, a calculator, a course. The honest start of an email list.

LLPLimited Liability Partnership

A partnership with limited liability and lighter compliance than a company. Suits service firms not seeking equity investment.

Where it matters: Choose Your Structure
LTVLifetime Value

Total revenue expected from one customer over the relationship. Healthy businesses keep LTV comfortably above CAC.

Where it matters: Investor Readiness

M

MoAMemorandum of Association

The charter defining what your company exists to do and the scope it may operate in. Drafted at incorporation.

Where it matters: Company Registration
MSMEMicro, Small & Medium Enterprises

The government classification unlocking subsidies, credit schemes, and tender access — claimed through Udyam registration.

Where it matters: Udyam Registration
MVPMinimum Viable Product

The smallest version of a product that lets real users generate real learning. The discipline is in the word minimum.

Where it matters: Launchpad

N

NDANon-Disclosure Agreement

The contract that keeps shared information confidential. Usually the first document a new business signs — and over-feared relative to its power.

O

OPCOne Person Company

A company structure for a single founder wanting limited liability without partners. Converts to Pvt. Ltd. as the business grows.

Where it matters: Choose Your Structure

P

PANPermanent Account Number

The tax identity of a person or entity. Your company gets its own at incorporation — separate from yours, like everything else about it.

Where it matters: Company Registration
Pitch Deck

The 10–15 slide narrative of problem, solution, market, traction, and ask. Read in three minutes; remembered — or not — for much longer.

Where it matters: Investor Pitch Deck
Pvt. Ltd.Private Limited Company

The standard structure for startups intending to raise investment, issue ESOPs, or scale with shareholders. Highest compliance, highest credibility.

Where it matters: Choose Your Structure

R

ROASReturn on Ad Spend

Revenue generated per rupee of advertising. The first number to watch in paid campaigns — and the easiest to inflate with bad attribution.

ROCRegistrar of Companies

The MCA office your company reports to annually. Missed ROC deadlines are how healthy companies acquire penalties.

Where it matters: Annual ROC Compliance
Runway

Months of operation your cash can fund at the current burn rate. Every plan should state what it does to the runway.

S

SEOSearch Engine Optimization

The practice of being found when customers search. Compounds slowly, decays slowly — the opposite of ads in both directions.

Where it matters: Growth services
SLAService Level Agreement

A written commitment to response and resolution times. Ours is 24 hours, in the contract — not on a poster.

Where it matters: How We Work

T

TANTax Deduction Account Number

Required the moment you deduct tax at source — typically your first salaried hire. Issued with incorporation in our process.

Where it matters: Company Registration
TDSTax Deducted at Source

Tax withheld when paying salaries, rent, or professional fees, deposited on the payee's behalf. Becoming an employer makes you a deductor.

Term Sheet

The non-binding summary of an investment's key terms — valuation, board, rights. The negotiation happens here; the legal documents follow it.

Trademark Class

One of 45 categories under which marks are registered. Filing in the wrong class protects a name nobody is using against you.

Where it matters: Trademark Filing

U

UdyamMSME Registration

The government registration recognising your business as an MSME — subsidies, credit access, tender eligibility. The cheapest credibility in Indian business.

Where it matters: Udyam Registration
Unit Economics

Profit and loss for a single unit — one customer, one order, one subscription. If the unit loses money, scale only makes it worse, faster.

Where it matters: Investor Readiness

V

Valuation

What the company is worth on paper, set when investment is priced. A number that matters enormously twice — at raise and at exit — and very little in between.

Venture CapitalVC

Institutional investment in exchange for equity, built for businesses that can grow very large, very fast. Most good businesses should never take it — by design.

W

Working Capital

The cash that funds the gap between paying suppliers and being paid by customers. Most small-business cash crises are working-capital crises wearing a disguise.

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