Dilution:
Dilution can be a concern for existing shareholders of a startup because it can decrease the value of their shares. When the company issues new shares, the total number of outstanding shares increases. This means that the percentage of the company owned by each shareholder is diluted, or reduced. As a result, each share becomes less valuable because it represents a smaller portion of the company. This can happen during a funding round when the company raises money by issuing new shares to investors. In this situation, existing shareholders may see the value of their shares decrease as a result of dilution.
Direct selling:
Direct selling is a method of selling products or services directly to consumers, typically outside of a retail storefront. This can be done through in-home demonstrations, parties, or other personal contact methods. In direct selling, the salesperson is also typically the product or service provider, and they earn a commission on their sales. Direct selling is different from other forms of retail because it focuses on building personal relationships with customers and creating a sense of community among members of the sales team. This approach can be effective for companies selling products that require explanation or demonstration, such as home goods, cosmetics, or health and wellness products.
Distribution Channel:
A distribution channel is a network of organizations and individuals that work together to move a product or service from the producer to the customer. This can include intermediaries such as wholesalers, distributors, and retailers, as well as transportation and logistics companies. The distribution channel is an important part of the supply chain, as it determines how the product or service will reach the end customer. Different distribution channels can be used depending on the type of product, the target market, and the goals of the producer. For example, a company selling expensive, specialized equipment may use a direct sales model, while a company selling mass-market consumer goods may use a multi-channel distribution strategy. The choice of the distribution channel can have a significant impact on the success of a product or service.
Distributor:
A distributor is a company that buys products from manufacturers and sells them to retailers, wholesalers, or other distributors. The distributor acts as an intermediary between the manufacturer and the end customer and is responsible for managing the distribution and logistics of the products. Distributors often specialize in a particular type of product or market and may provide additional services such as marketing, technical support, or financing. They may also offer a range of products from multiple manufacturers, allowing retailers and other customers to purchase a variety of products from a single source. Distributors play a key role in the supply chain, helping to ensure that products are available to customers in the right quantities and at the right time.
Downsize:
Downsizing refers to the process of reducing the size of a company, typically by reducing the number of employees. This can be done for a variety of reasons, such as to cut costs, to improve efficiency, or to adjust to changing market conditions. Downsizing can be a difficult decision for a company to make, as it can have significant effects on the employees who are affected and on the overall culture of the organization. Downsizing can also have negative effects on the company’s reputation and on morale among remaining employees. Some companies may try to avoid downsizing by implementing other cost-cutting measures or by offering early retirement or voluntary separation programs.
I have not experienced this thing in my own life so if you feel some mistakes here, so please put your thoughts in comments and correct them so all the readers get a piece of valuable knowledge.