Accounts Payable – Money that must be paid to vendors for products and/or services that you purchased using credit.
Accounts Receivable – Money that is owed to your company for products and/or services purchased from you using credit.
Accrued Expenses Payable – Costs that must be recorded to ensure that all financial statements are exact.
Assets – Items owned by a business that have value and therefore increase the net worth of the organization.
Balance Sheet – A written or electronic record of an organization’s financial balances that includes items such as assets and liabilities.
Bottom Line – Also known as net income, your bottom line is your overall profit after expenses.
Brand – The combination of your name, logo, messaging, look and feel, and image that uniquely identifies your goods and services and differentiates you from your competitors.
Business Plan – A document prepared by a business owner that outlines the past, present, and future of the company. It is usually utilized to attract investors, and will contain items such as sales, cash flow projections, objectives, strategies, customers, products, and more.
[Marketing] Campaign – An explicitly defined cycle of activities used to market a new or changing product or service.
Capital – Funds that are able to be invested in a business in order to grow.
Capital Expenditure Budget – A plan that outlines and controls spending on capital assets (also called fixed assets or long-term assets).
Cash – Money in the form of currency or legal tender, rather than in the form of assets.
Cash Flow Statement – Shows actual cash movement within a business over a specified period of time. The cash flow statement reconciles the income statement (profit and loss) with the balance sheet.
Certified Public Accountant – An accountant who has met certain standards, including experience, age, and licensing, in the U.S. state where he or she works.
Collateral – An asset that can be repossessed if a borrower does not repay a debt to a lender.
Competition – Other businesses who offer similar products or services to your target audience.
Copyright – Ensures that the creator of a work own exclusive rights to that product or services it for a certain time period.
Corporation – A business entity that is legally separate from its owners. A corporation is allowed to own assets, incur liabilities, and sell securities without holding its creators independently responsible.
Cost Breakdown – An analysis of expenses having to do with a particular project.
Cost of Goods Sold – The price of direct materials, direct labor, and allocated overhead coupled with products sold during a defined period.
Cost Up – (see Mark up)
Credit Score – An evaluation of a person’s worthiness to borrow money that is based on his or her history of repaying debt on time.
Collateral Material – (See Collateral)
Commodity – A product that is priced based on fluctuations of the market as a whole, rather than based on the supplier.
Customer Service – Interaction with the consumer electronically, over the phone, or in person before, during, and after a purchase.
Customer Groups – Individual segments of customers grouped by demographics.
Demographic Profile – A description of a population based on characteristics including age, sex, income, geography, etc.
Direct Mail – A form of marketing that involves sending information through a print or electronic mail process to a highly targeted list of potential customers.
Direct Competitors – Companies in the marketplace that offer the same good or service as your company.
Distribution – A process of supplying goods to vendors and/or retailers.
Employer Tax Identification Number (EIN) – Also known as your Federal Employer Identification Number, your (FEIN) is the corporate equivalent to a Social Security Number that is issued to anyone, including individuals, who has to pay withholding taxes on employees.
Entrepreneurial – The attitude related to starting a new business venture; recognizing and pursuing opportunities that may not be visible to others, and find the resources necessary to accomplish various business goals.
Equity – The remaining interest in assets once liabilities are paid.
Equipment – Tools used in the operations of your business.
Expenses – The costs incurred in producing your company’s goods or services.
Fixed Assets – Land, buildings, equipment, and other assets required for operating your company.
Forecasted Income Statement – Also called forecasted profit and loss statement. A forecasted income statement is a financial statement that shows predicted future sales, cost of sales, gross margin, operating expenses, and profits or losses. Gross margin is sales less cost of sales, and profit (or loss) is gross margin less operating expenses and taxes. The result is profit of it’s positive, and loss if it’s negative.
Geographic Profile – A description of a group of people based on their geography or physical location.
Gross Profit – The profit a company makes before expenses and taxes are withdrawn.
Health Insurance – Insurance that protects from loss by illness or bodily injury. Health insurance provides coverage for medicine, visits to the doctor or emergency room, hospital stays, and other medical expenses. Policies differ in what they cover.
Income Statements – A financial statement that displays a breakdown of sales and expenses.
Indirect Competitors – Competition among the suppliers of different types of products that satisfy the same needs.
Intellectual Assets – Legal property rights over both artistic and commercial creations of the mind.
Internal Revenue Service (IRS) – The federal agency responsible for the collection of federal taxes, including personal and corporate income taxes, social security taxes, excise taxes, and gift taxes.
Inventory – Goods bought or manufactured for resale that you have on-hand and have not been sold, including raw materials, works-in-progress, and finished goods.
Liability – A dollar amount of obligation payable to another entity.
Limited Liability Company (LLC) – An entity which has corporate personality and limited liability for all its members, but which in all other respects behaves like a partnership.
Loans Payable – Amounts of money that have been loaned to the company and that is has not yet paid back.
Luxury Item – A good or service that is not considered a necessity but is considered as something that brings pleasure or happiness.
Margin Analysis – An evaluation of the cost of production versus the final sale price to determine a target profit level.
Marketing Strategy – Written plan combining product development, promotion, distribution, and pricing approach. It identifies the firm’s marketing goals and explains how they will be achieved within a stated timeframe. Marketing strategy determines choice of target market, positioning, mix, and allocation of resources.
Market Research & Studies – Research conducted about a specific market to determine various trends and risk factors.
Market Trends – Changes in producer and consumer behavior due to societal and economic circumstances that affect supply and demand.
Marketing Plan – A written document containing descriptions and guidelines for an organization’s or a product’s marketing strategies, tactics, and programs for promoting their products and services over the defined planning period, often one year.
Mark Up – An increase in the cost of a product to arrive at its selling price.
Mission Statement – A statement that captures an organization’s purpose, goals, general business philosophy.
Net Income – The profit a company makes after expenses and taxes are subtracted from net assets.
Net Loss – Amount by which total of costs and expenses exceeds total revenue in an accounting period.
Notes Payable – Amounts owed by the company that have been formalized by a legal document called a note.
Operating Expenses – The amount of money the company must spend on overhead, distribution, taxes, underwriting the risk, and servicing the policy. It is a factor in calculating premium rates.
Operating Income – The net income of a business, less the impact of any financial activity such as interest expense, investment income, taxes, and extraordinary items.
Paid-In Capital – Any payment received from investors for stock that exceeds the par value of the stock.
Partnership – Shared ownership among two or more individuals, some of whom may, but do not necessarily, have limited liability.
Patent – A set of exclusive rights granted by a state for a limited period of time to an inventor in return for disclosure of an invention.
Prepaid Insurance – Payment made in advance in return for insurance services that are to be rendered over a specified period of time. A person or entity who purchases prepaid insurance is called a policy holder, and they are liable for any deductibles should an insurance claim be filed. This is considered a short-term asset or a prepaid expense in accounting.
Primary Consumer – The main target customer base for your goods or services.
Primary Research – Collection of information that does not already exist.
Profit Margin – Indicator of profitability. The ratio of earnings available to stockholders to net sales. Determined by dividing net income by revenue for the same 12-month period. Result is shown as a percentage.
Product Trends – Noteworthy themes occurring in new products.
Promotion – The process of marketing and/or advertising to increase consumer awareness of product or service.
Promotional Material – Items used to increase awareness of a product or service.
Public Relations – Efforts to establish and maintain the image of a business with the public.
Regulated Business – An entity which is controlled or governed by an outside force such as a government.
Resources – Any assets that can be used to accomplish a goal.
Retained Earnings – Accounting earnings that are retained by the firm for reinvestment in its operations; earnings that are not paid out as dividends.
Revenue – Income earned from the sale of goods and services.
Seasonal Trends – Changes in supply or demand based on the changing of the season.
Secondary Research – Collecting data through research that has already been conducted.
Security Deposits – Money paid in advance of a transaction to protect a seller or renter against damage or nonpayment.
Sole Proprietorship – A business owned by a single individual. The sole proprietorship pays no corporate income tax but has unlimited liability for business debts and obligations.
Strategic Alliance – A formal relationship between two or more businesses that mutually benefit from the relationship and depend on the alliance to fulfill a critical business need.
Talking Points – Items that are a priority to discuss in a speaking agenda.
Target Market – The segment of a market at which marketing and/or promotions are directed.
Trade Associations – Groups of entities allied together to promote a particular business sector.
Trademark – A distinctive sign or symbol used by an organization to identify a product to customers, distinguishing the product from other entities.
Vision Statement – An idealized description of a desired outcome that inspires, energizes, and helps one create a mental picture of a company’s goals.
Worker’s Compensation Insurance – Provides insurance to cover medical care and compensation for employees who are injured on the job, in exchange for employees to give up their right to sue their employer for negligence.