4/8/23, 10:35 PM
Shark Tank India Season 2: The Business Terms Used in the Show That You Need To Know
Members Only
Politics
Opinion
The T20 Podcast
Videos
Podcasts
Crackdown on Amritpal Singh
Entertainment
IPL 2023
WebQoof
Graphic Novels
Special Projects
FIT
Photos
Home
Explainers
Offer to Counter-Offer: Your Guide to Commonly Used Phrases in Shark Tank India
SUPPORT US
A D V E RT I S E M E N T
Offer to Counter-Offer: Your Guide to Commonly Used
Phrases in Shark Tank India
We look at the business terminology and finance vocabulary used in Shark Tank India,
and explain what it all means.
VISHNU GOPINATH
Published: 03 Jan 2023, 4:55 PM IST
EXPLAINERS
5 min read
Share
×
Become a Member
https://www.thequint.com/explainers/shark-tank-india-commonly-used-business-terms#read-more
1/19
4/8/23, 10:35 PM
Shark Tank India Season 2: The Business Terms Used in the Show That You Need To Know
Members Only
Politics
Opinion
The T20 Podcast
Videos
Podcasts
Crackdown on Amritpal Singh
Entertainment
IPL 2023
WebQoof
Graphic Novels
Special Projects
FIT
Photos
i
SUPPORT US
Share on
Listen To This Story
The Quint DAILY
For impactful stories
you just can’t miss
Sign Up
Enter Email
Share
By subscribing you agree to our Privacy Policy
×
Become a Member
https://www.thequint.com/explainers/shark-tank-india-commonly-used-business-terms#read-more
2/19
4/8/23, 10:35 PM
Shark Tank India Season 2: The Business Terms Used in the Show That You Need To Know
SharkMembers
Tank India
for season
2 on Sony
Liv on Singh
2 January,
and before
think FIT
Only returned
The T20 Podcast
Crackdown
on Amritpal
WebQoof
Specialyou
Projects
this
sounds
like aVideos
promotion
the show, it'sIPLnot.
isn't.
Politics
Opinion
Podcastsfor Entertainment
2023 Really.
GraphicItNovels
Photos
While judge Ashneer Grover was visibly absent, the show continues its second season
with CarDekho CEO Amit Jain in his stead.
Shark Tank India is just entering its infancy, gently walking into season 2, but the original
Shark Tank is well into its 14th season and has won multiple Emmy Awards since it
started in August 2009.
But for someone like you and I, who may not understand the business end of Shark
Tank, watching the series could be a little challenging, and even straight up confusing.
So, to simplify your experience, and to teach you just a little bit about the terminology
Offer to Counter-Offer: Your Guide to Commonly Used Phrases in Shark Tank
India
SUPPORT US
used on Shark Tank, we dived into the vocabulary of Shark Tank and what it means.
1. Valuation
Valuation or business valuation is used to determine the economic value of a
business.
Business evaluators look at a company's capital structure, management, future earnings,
profit and revenue margins to assess the economic value of the company. This is useful
when a company wants to sell parts of its organisation, enter a merger, or even
approach investors for more funding.
Share
×
Become a Member
https://www.thequint.com/explainers/shark-tank-india-commonly-used-business-terms#read-more
3/19
Shark Tank India Season 2: The Business Terms Used in the Show That You Need To Know
Members Only
Politics
Opinion
The T20 Podcast
Videos
Podcasts
Crackdown on Amritpal Singh
Entertainment
IPL 2023
WebQoof
Graphic Novels
Special Projects
FIT
Photos
via GIPHY
In Shark Tank, valuation helps the sharks understand a company's economic position,
and understand whether the business is financially sound and how it has performed in
SUPPORT US
4/8/23, 10:35 PM
the past. This is useful if they want to enter into a partnership and even sell the
company in the future.
Business valuation is done by assessing a startup or a company's book value, market
cap, and earnings multipliers.
Also Read
Warren Buffet Birthday: 25 Quotes on Life, Business, and
Share
Investment
×
Become a Member
Collapse
https://www.thequint.com/explainers/shark-tank-india-commonly-used-business-terms#read-more
4/19
4/8/23, 10:35 PM
Shark Tank India Season 2: The Business Terms Used in the Show That You Need To Know
Members Only
2. Prototype
Politics
Opinion
The T20 Podcast
Videos
Podcasts
Crackdown on Amritpal Singh
Entertainment
IPL 2023
WebQoof
Graphic Novels
Special Projects
FIT
Photos
A prototype is a sample version of the the product that you create to test. While
prototypes in science refer to physical versions of an invention, or trial versions of
software or formulations, in business terms prototypes can be one of two types.
The first, is a product prototype. If you're creating a unique or new product, you want
to create a test version of the product to try and get market feedback. This early-stage
feedback from buyers and users should shape your product as you develop it.
The second, and more relevant in this context, is a business prototype. A business
prototype is a financial simulation, as opposed to a tangible product. A business
prototype involves asking questions about desirability, viability, and feasibility of your
"Before a lot of money is invested in a product, you create a working sample of it. This is
called a prototype. After market testing the prototype you can also improve the product
and its usefulness."
SUPPORT US
product.
Anupam Mittal, Founder, Shaadi.com, Shark Tank judge
Some of the questions that a business prototype will need to answer include:
●
What is the unique value proposition (USP) of your product?
●
Do people want this product?
●
Is the business sustainable?
●
What are your costs and where is your capital coming from at present?
●
Is it scalable to expand and grow?
Share
×
Become a Member
https://www.thequint.com/explainers/shark-tank-india-commonly-used-business-terms#read-more
5/19
4/8/23, 10:35 PM
Shark Tank India Season 2: The Business Terms Used in the Show That You Need To Know
Members
Only to The
T20 questions
Podcast Crackdown
on Amritpal
Singh WebQoof
Special
Getting
answers
these
is essential
for a business
to succeed,
and Projects
for
FIT
investors
to makeVideos
sure you're
thinking
the future
your business.
Politics
Opinion
Podcasts actually
Entertainment
IPL about
2023
Graphic
Novels ofPhotos
Also Read
Watch: SpaceX Starship Prototype SN10 Explodes After
Landing
Collapse
3. Net Profit and Net Profit Margin
More often than not, the sharks ask hopeful entrepreneurs what their product or
service's net profit or profit margin is. Net profit is the total profit that company makes
revenue. It's different from turnover, which is a company's total sales over a period of
time.
Net profit is also called net income or net earnings. It's what the sharks refer to as the
SUPPORT US
AFTER deducting taxes, operating costs, interest, and depreciation from its total
company's "bottom line".
Share
×
Become a Member
https://www.thequint.com/explainers/shark-tank-india-commonly-used-business-terms#read-more
6/19
4/8/23, 10:35 PM
Shark Tank India Season 2: The Business Terms Used in the Show That You Need To Know
Members
Only The
T20 same
PodcastnetCrackdown
on Amritpal Singh
Special
Net profit
margin
is the
profit in percentage
form.WebQoof
How are the
twoProjects
FIT
different?
Well, net
profitPodcasts
is the company's
in absolute
monetary terms and
Politics
Opinion
Videos
Entertainment performance
IPL 2023
Graphic
Novels
Photos
net profit margin provides their performance in relative terms. This helps assess the
company's progress and performance compared to their past performance.
Both terms are important because net profit margin might indicate that a company is
performing better but in absolute monetary terms it might be performing poorly.
For example, if 'A' runs a specialty food restaurant and makes just Rs
10,000 in net profit in one quarter, and makes Rs. 15,000 in the next
quarter that is a net profit margin growth of 50 percent. However, in net
profit terms, it's a barely profitable restaurant.
SUPPORT US
Also Read
Tesla Sees Profit Decline, Sells Off 75 Percent of Its Bitcoin
Holdings
Collapse
4. Equity
In the simplest terms, equity is ownership of the assets of a company. Whether that's 50
percent, 100 percent, or even 3 percent, it gives an individual ownership of that much of
a company's assets.
Share
Equity is calculated in two ways – book value and market value. Book value is a simple
difference between the company's assets and liabilities, AKA how much they are owed
×
Become a Member
https://www.thequint.com/explainers/shark-tank-india-commonly-used-business-terms#read-more
7/19
4/8/23, 10:35 PM
Shark Tank India Season 2: The Business Terms Used in the Show That You Need To Know
Members
The T20
Podcastvalue
Crackdown
on Amritpal
Singh price
WebQoof
Projects
vs how
muchOnly
they owe.
Market
of equity
is the share
of the Special
company's
shares
the stock
market.
Politics inOpinion
Videos
Podcasts
Entertainment
IPL 2023
Graphic Novels
FIT
Photos
Usually, the sharks ask an entrepreneur for a percentage of their venture as equity in
exchange for their investment. In the long run, as a business becomes more profitable,
equity pays better dividends.
Which is why the sharks often try to get a higher percentage of the entrepreneur's
company as equity. Because, in the long run, it's likely to make them much more money.
Equity is often issued to investors or directors of a company through the issue of equity
shares in the company.
Also Read
SUPPORT US
I-T Department Alleges Business, Tax Irregularities Against
Dolo-650 Maker
Collapse
5. Offer vs Counter-Offer
In Shark Tank, entrepreneurs have a set amount of funding they would like from the
sharks, usually in exchange for equity. The amount of money they're asking for coupled
with the equity they're offering the sharks, is the original ask.
However, more often than not, the sharks respond with an offer of their own. In
business terms, an offer is a proposal to buy or sell something, which becomes legally
binding once accepted. Once a shark makes an offer, the entrepreneurs have to accept
Share
the offer. It's only when they accept the offer made, with all the conditions mentioned,
that the offer is considered accepted.
×
Become a Member
https://www.thequint.com/explainers/shark-tank-india-commonly-used-business-terms#read-more
8/19
Shark Tank India Season 2: The Business Terms Used in the Show That You Need To Know
Members Only
Politics
Opinion
The T20 Podcast
Videos
Podcasts
Crackdown on Amritpal Singh
Entertainment
IPL 2023
WebQoof
Graphic Novels
Special Projects
FIT
Photos
via GIPHY
However, if the entrepreneur returns with a counter-offer, the sharks then have to
SUPPORT US
4/8/23, 10:35 PM
accept the counter-offer or make another offer of their own to enter into an agreement.
Which is why, often, you'll see the sharks upset when an entrepreneur makes another
offer to their counter-offer.
Also Read
India’s MSMEs: Why COVID-Battered Businesses are Still
Struggling to Survive
Share
×
Become a Member
https://www.thequint.com/explainers/shark-tank-india-commonly-used-business-terms#read-more
9/19
4/8/23, 10:35 PM
Shark Tank India Season 2: The Business Terms Used in the Show That You Need To Know
Members
Theanswerable
T20 Podcast only
Crackdown
Amritpal Singh
Special
Projects our
FIT
(At The
Quint,Only
we are
to ouron
audience.
Play anWebQoof
active role
in shaping
journalism
by becoming
a member.
Because the
truth is
worth
it.)
Politics
Opinion
Videos
Podcasts
Entertainment
IPL 2023
Graphic
Novels
Photos
Collapse
Valuation
Valuation or business valuation is used to determine the economic value of a
business.
Business evaluators look at a company's capital structure, management, future earnings,
profit and revenue margins to assess the economic value of the company. This is useful
when a company wants to sell parts of its organisation, enter a merger, or even
SUPPORT US
approach investors for more funding.
In Shark Tank, valuation helps the sharks understand a company's economic position,
Share
and understand whether the business is financially sound and how it has performed in
the past. This is useful if they want to enter into a partnership and even sell the
company in the future.
https://www.thequint.com/explainers/shark-tank-india-commonly-used-business-terms#read-more
×
Become a Member
10/19
4/8/23, 10:35 PM
Shark Tank India Season 2: The Business Terms Used in the Show That You Need To Know
Business
valuation
is done
by assessing
a startup
or a Singh
company's
book value,
market
Members
Only The
T20 Podcast
Crackdown
on Amritpal
WebQoof
Special Projects
cap,
and Opinion
earningsVideos
multipliers.
Politics
Podcasts
Entertainment
IPL 2023
Graphic Novels
FIT
Photos
Also Read
Warren Buffet Birthday: 25 Quotes on Life, Business, and
Investment
SUPPORT US
A D V E RT I S E M E N T
Prototype
A prototype is a sample version of the the product that you create to test. While
prototypes in science refer to physical versions of an invention, or trial versions of
software or formulations, in business terms prototypes can be one of two types.
The first, is a product prototype. If you're creating a unique or new product, you want
to create a test version of the product to try and get market feedback. This early-stage
feedback from buyers and users should shape your product as you develop it.
The second, and more relevant in this context,
Share is a business prototype. A business
prototype is a financial simulation, as opposed to a tangible product. A business
prototype involves asking questions about desirability, viability, and feasibility of your
product.
https://www.thequint.com/explainers/shark-tank-india-commonly-used-business-terms#read-more
×
Become a Member
11/19
4/8/23, 10:35 PM
Shark Tank India Season 2: The Business Terms Used in the Show That You Need To Know
Members Only
Politics
Opinion
"Before
a lot
The T20 Podcast
Crackdown on Amritpal Singh
WebQoof
Special Projects
FIT
Entertainment
IPL 2023
GraphicaNovels
Photos
ofVideos
moneyPodcasts
is invested
in a product,
you create
working
sample of it. This is
called a prototype. After market testing the prototype you can also improve the product
and its usefulness."
Anupam Mittal, Founder, Shaadi.com, Shark Tank judge
●
What is the unique value proposition (USP) of your product?
●
Do people want this product?
●
Is the business sustainable?
●
What are your costs and where is your capital coming from at present?
●
Is it scalable to expand and grow?
Getting answers to these questions is essential for a business to succeed, and for
investors to make sure you're actually thinking about the future of your business.
SUPPORT US
Some of the questions that a business prototype will need to answer include:
Also Read
Watch: SpaceX Starship Prototype SN10 Explodes After
Landing
A D V E RT I S E M E N T
Share
×
Become a Member
https://www.thequint.com/explainers/shark-tank-india-commonly-used-business-terms#read-more
12/19
4/8/23, 10:35 PM
Shark Tank India Season 2: The Business Terms Used in the Show That You Need To Know
Members Only
Politics
Opinion
The T20 Podcast
Videos
Podcasts
Crackdown on Amritpal Singh
Entertainment
IPL 2023
WebQoof
Graphic Novels
Special Projects
FIT
Photos
Net Profit and Net Profit Margin
More often than not, the sharks ask hopeful entrepreneurs what their product or
service's net profit or profit margin is. Net profit is the total profit that company makes
AFTER deducting taxes, operating costs, interest, and depreciation from its total
revenue. It's different from turnover, which is a company's total sales over a period of
time.
Net profit is also called net income or net earnings. It's what the sharks refer to as the
SUPPORT US
company's "bottom line".
Net profit margin is the same net profit in percentage form. How are the two
Share
different? Well, net profit is the company's performance in absolute monetary terms and
net profit margin provides their performance in relative terms. This helps assess the
company's progress and performance compared to their past performance.
×
Become a Member
https://www.thequint.com/explainers/shark-tank-india-commonly-used-business-terms#read-more
13/19
4/8/23, 10:35 PM
Shark Tank India Season 2: The Business Terms Used in the Show That You Need To Know
BothMembers
terms are
important
because Crackdown
net profiton
margin
might
thatSpecial
a company
Only
The T20 Podcast
Amritpal
Singh indicate
WebQoof
Projectsis
FIT
performing
better
but inPodcasts
absolute
monetary terms
be performing
poorly.
Politics
Opinion
Videos
Entertainment
IPL 2023 it might
Graphic Novels
Photos
For example, if 'A' runs a specialty food restaurant and makes just Rs
10,000 in net profit in one quarter, and makes Rs. 15,000 in the next
quarter that is a net profit margin growth of 50 percent. However, in net
profit terms, it's a barely profitable restaurant.
Also Read
SUPPORT US
Tesla Sees Profit Decline, Sells Off 75 Percent of Its Bitcoin
Holdings
A D V E RT I S E M E N T
Equity
In the simplest terms, equity is ownership of the assets of a company. Whether that's 50
percent, 100 percent, or even 3 percent, Share
it gives an individual ownership of that much of
a company's assets.
×
Become a Member
https://www.thequint.com/explainers/shark-tank-india-commonly-used-business-terms#read-more
14/19
4/8/23, 10:35 PM
Shark Tank India Season 2: The Business Terms Used in the Show That You Need To Know
Equity
is calculated
in two
ways – book
valueonand
market
value.
Book value
is Projects
a simple FIT
Members
Only The
T20 Podcast
Crackdown
Amritpal
Singh
WebQoof
Special
difference
between
the company's
assets andIPLliabilities,
AKA
how much
Politics
Opinion
Videos
Podcasts
Entertainment
2023
Graphic
Novels
Photos they are owed
vs how much they owe. Market value of equity is the share price of the company's
shares in the stock market.
Usually, the sharks ask an entrepreneur for a percentage of their venture as equity in
exchange for their investment. In the long run, as a business becomes more profitable,
equity pays better dividends.
Which is why the sharks often try to get a higher percentage of the entrepreneur's
company as equity. Because, in the long run, it's likely to make them much more money.
Equity is often issued to investors or directors of a company through the issue of equity
shares in the company.
SUPPORT US
Also Read
I-T Department Alleges Business, Tax Irregularities Against
Dolo-650 Maker
A D V E RT I S E M E N T
Share
Offer vs Counter-Offer
https://www.thequint.com/explainers/shark-tank-india-commonly-used-business-terms#read-more
×
Become a Member
15/19
4/8/23, 10:35 PM
Shark Tank India Season 2: The Business Terms Used in the Show That You Need To Know
In Shark
Tank,Only
entrepreneurs
have aCrackdown
set amount
of funding
would like
from
the
Members
The T20 Podcast
on Amritpal
Singh they
WebQoof
Special
Projects
FIT
sharks,
exchange
for equity.
The amount
money
they're
asking for coupled
Politics usually
Opinion inVideos
Podcasts
Entertainment
IPL 2023 ofGraphic
Novels
Photos
with the equity they're offering the sharks, is the original ask.
However, more often than not, the sharks respond with an offer of their own. In
business terms, an offer is a proposal to buy or sell something, which becomes legally
binding once accepted. Once a shark makes an offer, the entrepreneurs have to accept
the offer. It's only when they accept the offer made, with all the conditions mentioned,
SUPPORT US
that the offer is considered accepted.
However, if the entrepreneur returns with a counter-offer, the sharks then have to
accept the counter-offer or make another offer of their own to enter into an agreement.
Which is why, often, you'll see the sharks upset when an entrepreneur makes another
offer to their counter-offer.
Share
Also Read
https://www.thequint.com/explainers/shark-tank-india-commonly-used-business-terms#read-more
×
Become a Member
16/19
4/8/23, 10:35 PM
Shark Tank India Season 2: The Business Terms Used in the Show That You Need To Know
Members Only
Politics
Opinion
The T20 Podcast
Videos
Podcasts
Crackdown on Amritpal Singh
Entertainment
IPL 2023
WebQoof
Graphic Novels
Special Projects
FIT
Photos
India’s MSMEs: Why COVID-Battered Businesses are Still
Struggling to Survive
(At The Quint, we are answerable only to our audience. Play an active role in shaping our
journalism by becoming a member. Because the truth is worth it.)
Read Latest News and Breaking News at The Quint, browse for more from Explainers
Topics: Ashneer Grover Shark Tank India Shark Tank
SUPPORT US
A D V E RT I S E M E N T
Speaking truth to power requires allies like you.
Become a Member
Share
₹500
₹1800
3 months
12 months
https://www.thequint.com/explainers/shark-tank-india-commonly-used-business-terms#read-more
PREMIUM
₹5000
or more
×
Become a Member
12 months
17/19
4/8/23, 10:35 PM
Shark Tank India Season 2: The Business Terms Used in the Show That You Need To Know
Members Only
Politics
Opinion
The T20 Podcast
Videos
Podcasts
Crackdown on Amritpal Singh
Check Member Benefits
Entertainment
IPL 2023
WebQoof
Graphic Novels
Special Projects
FIT
Photos
Read More
Explained: Why is Translocation of Asiatic Lions From Gir Still
on Back Burner?
SUPPORT US
'Cool Roofs' in Telangana & Ahmedabad: How Does This
Heat-Proofing Method Work?
Donald Trump: What Happens Next, And What it May Mean
For The 2024 Election
What Makes Nita Mukesh Ambani Cultural Centre a First-ofits-Kind in India?
Share
×
SECTIONS
https://www.thequint.com/explainers/shark-tank-india-commonly-used-business-terms#read-more
Become a Member
18/19
4/8/23, 10:35 PM
Shark Tank India Season 2: The Business Terms Used in the Show That You Need To Know
Politics Opinion Videos Podcasts
Members Only The T20 Podcast
HOPE Series
Politics
World
Sports
Opinion
South Asians
IPL Points Table
Law
Videos
Gender
Podcasts
Education
IPL Orange Cap
Entertainment IPL 2023 Graphic Novels
Crackdown on Amritpal Singh WebQoof
Cyber
Climate Change
Entertainment
Quint Lab
IPL 2023
Business
FAQs
Explainers
Graphic Novels
Good News
Photos India
Special Projects
Photos
FIT
Technology
Members' Opinion
IPL Purple Cap
TRENDING TOPICS
Bank Holidays in April 2023
ITR Filing
Ramadan Mubarak
IPL 2023 Points Table
Poco C51
Poco F5 5G
IPL 2023
Garena Free Fire MAX
Aadhaar-PAN Linking
NSE Holidays
Easter 2023
Happy Hanuman Jayanti
RBI Monetary Policy
Wordle 656
Galaxy A34 5G
CBSE Results
SSC GD Constable Result
WhatsApp Navigation
Kerala Lottery Result
IPL 2023 Schedule
UP Board Result
RBSE 10th Result
Vivo T2 Series
Good Friday
Army Admit Card
UGC NET Result
BQ Prime
Quint Hindi
About Us
Contact Us
SUPPORT US
FOLLOW US ON
FIT
Privacy Policy
T&C
Share
×
https://www.thequint.com/explainers/shark-tank-india-commonly-used-business-terms#read-more
19/19