it means to stop someting before it grows/gets worse. sort of like nipping a flower when it's still a bud so it can't grow.
-holy cow! my zit is huuge!
-yeah, you'd better nip it in the bud before it gets worse.
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Steve won misspelled this word in the spelling bee back in 3rd grade. He spelled C-O-U-P-O-N and while waiting for the principal to tell him he was correct he blurted out "D!" Steve is a dumbass. But you should still vote for him.
Steve: C...O...U...P...O...N
Principal:...
Steve: D!
Principal: You're a Dumbass
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