Key Business Vocabulary and Concepts

Executive Summary

A brief overview of the entire business plan.

Value Proposition

The unique value a company offers to its customers.

Competitive Advantage

A factor that distinguishes a business from competitors.

Target Market

The specific group of consumers a business aims to serve.

Industry Analysis

Evaluation of market trends and competition in an industry.

SWOT Analysis

Assessment of Strengths, Weaknesses, Opportunities, and Threats.

Milestones

Key goals or achievements with target dates.

Business Model

The strategy a company uses to generate revenue.

Market Share

A company's portion of total sales in its industry.

Operational Plan

Description of daily business operations.

Revenue Streams

The sources from which a business earns money.

Key Partnerships

Important business relationships for operations or growth.

Customer Segments

Distinct groups of potential buyers.

Financial Projections

Forecast of future income, expenses, and profits.

Break-even Point

When revenue equals total costs.

Cost Structure

The fixed and variable expenses of running a business.

Scalability

Ability to grow without significant increases in cost.

Unique Selling Proposition (USP)

A feature that makes the product or service stand out.

Organizational Structure

How roles and responsibilities are arranged.

Feasibility

Whether the plan is realistic and workable.

Intellectual Property

Legal rights to inventions, designs, or creative works.

Risk Mitigation

Actions taken to reduce potential threats.

Go-to-Market Strategy

Plan for launching a product to customers.

Exit Strategy

Planned method for leaving or selling the business.

Sustainable Practices

Environmentally and socially responsible operations.

Brand Identity

The visual and verbal elements that represent a brand.

Customer Persona

A fictional profile of a typical customer.

Market Segmentation

Dividing the market into distinct groups of buyers.

Positioning Statement

Describes how a brand wants to be perceived.

Conversion Rate

Percentage of users who take a desired action.

Search Engine Optimization (SEO)

Improving online content to increase visibility.

Marketing Funnel

Steps a customer takes from awareness to purchase.

Call to Action (CTA)

A prompt encouraging users to act (e.g., 'Buy now').

Content Marketing

Creating valuable content to attract an audience.

Influencer Strategy

Collaborating with individuals who impact buying decisions.

Customer Retention

Keeping existing customers over time.

Omnichannel Marketing

Seamless integration across multiple marketing channels.

Brand Equity

The value of a brand based on perception and recognition.

Social Proof

Influence created by reviews or testimonials.

Engagement Metrics

Measures of how users interact with content.

Unique Value Proposition (UVP)

Clear explanation of how a product solves a problem.

Viral Marketing

Rapid sharing of a campaign through social media.

Direct Marketing

Communicating directly with target customers.

Guerrilla Marketing

Unconventional and creative promotional strategies.

Product Differentiation

Distinguishing a product from competitors.

Pricing Strategy

The method used to price products or services.

Market Penetration

Strategy to increase market share in existing markets.

Return on Marketing Investment (ROMI)

Profit from marketing relative to its cost.

Customer Acquisition Cost (CAC)

Cost to gain a new customer.

Income Statement

A report of company revenue and expenses over time.

Balance Sheet

Snapshot of assets, liabilities, and equity.

Cash Flow Statement

Shows cash inflows and outflows over a period.

Gross Profit

Revenue minus cost of goods sold.

Net Income

Profit after all expenses and taxes.

Operating Expenses

Daily costs of running a business.

Depreciation

Decrease in asset value over time.

Assets

What the company owns.

Liabilities

What the company owes.

Equity

Ownership value in the company.

Capital Expenditures

Money spent on long-term assets.

Return on Investment (ROI)

Profitability measure of an investment.

Budget Variance

Difference between budgeted and actual figures.

Forecasting

Predicting future financial performance.

Cost of Goods Sold (COGS)

Direct costs of producing goods.

Liquidity

Ability to meet short-term financial obligations.

Solvency

Ability to meet long-term debts.

Working Capital

Current assets minus current liabilities.

Break-even Analysis

Determines when revenue will cover costs.

EBITDA

Measure of profitability before certain costs.

Profit Margin

Percentage of revenue that is profit.

Revenue Recognition

When revenue is officially recorded.

Financial Leverage

Use of borrowed money to increase returns.

Fixed vs. Variable Costs

Costs that stay the same vs. those that change with activity.

Fiscal Year

A 12-month period used for financial reporting.

Code of Conduct

Rules about employee behavior and ethics.

Equal Employment Opportunity (EEO)

Prohibits workplace discrimination.

At-Will Employment

Either party can end employment at any time.

Non-Disclosure Agreement (NDA)

A contract to keep company information confidential.

Workplace Harassment

Unwanted conduct affecting dignity at work.

Disciplinary Action

Steps taken when an employee breaks rules.

Conflict Resolution

Solving disagreements professionally.

Employee Classification

Determines whether workers are exempt or non-exempt.

Compensation Policy

Outlines wages, bonuses, and raises.

Overtime Regulations

Rules about pay for extra hours worked.

Attendance Policy

Guidelines for punctuality and presence.

Performance Appraisal

Formal evaluation of job performance.

Reasonable Accommodation

Changes to help employees with disabilities.

Family and Medical Leave Act (FMLA)

Job-protected leave for family or medical reasons.

Workplace Safety

Procedures to prevent accidents and injuries.

Drug-Free Workplace

Policy prohibiting illegal drug use at work.

Professional Development

Training and education to improve skills.

Probationary Period

Initial trial period for new employees.

Grievance Procedure

How employees raise formal concerns.

Remote Work Policy

Rules for working outside the office.

Ethics and Compliance

Following legal and moral guidelines.

Termination Policy

Rules regarding the end of employment.

Diversity and Inclusion

Encouraging varied backgrounds and equal treatment.

Anti-Retaliation Policy

Protects workers who report concerns or misconduct.

Confidentiality Agreement

Contract not to share sensitive information.