Words I don't know

capital

proof of concept

limited partnership

partnership

outsourcing

business incubator

minimum viable product (MVP)

unicorn

bottleneck

safety plan

crisis plan

continuity plan

asset security plan

1. Competition, Market Structure & Strategy

  • nonprice competition: a way to attract customers through style, service, or location, but not a lower price

  • price competition: emphasizing price as an issue and matching or beating competitors' prices

  • direct competition

  • indirect competition

  • regulated monopoly: monopoly that the government allows to exist legally

  • market position

  • buying power

  • absolute advantage

  • comparative advantage

  • Porter’s five forces

  • puffery

  • limited decision

  • nominal decision

  • extended decision

  • business model: a description on how an existing business or business idea plans to achieve success, make profit, and create value

2. Costs, Pricing & Production Economics

  • price discrimination: the business practice of selling the same good at different prices to different customers

  • economies of scale: factors that cause a producer's average cost per unit to fall as output rises / the production costs fall as more items are produced

  • marginal cost: the cost of producing one more unit of a good

  • average total cost

  • law of diminishing returns: the principle that, at some point, adding more of a variable input, such as labor, to the same amount of a fixed input, such as capital, will cause the marginal product of the variable input to decline

  • marginal analysis

  • gross margin: the amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted

3. Marketing, Customers & Distribution

  • touchpoint

  • channel

  • marketing mix:

    • place -

    • product -

    • price -

    • promotion -

      • press kit

  • intensive distribution

  • extensive distribution

  • direct distribution

  • indirect distribution

  • selective distribution

  • push strategy

  • pull strategy

  • rebate promotion

  • sweepstakes

  • coupon

  • markdown

  • bundling strategy

  • tying agreement: an agreement by a party to sell one product but only on the condition that the buyer also purchases a different (or tied) product, or at least agrees he will not purchase the product from any other supplier

  • market segmentation:

    • demographic

    • geographic

    • psychographic

    • behavioral

  • PEST analysis

4. Accounting Types & Financial Statements

  • managerial accounting

  • financial accounting

  • forensic accounting

  • internal auditing

  • GAAP

  • accrual method of accounting

Financial Statements

  • balance sheet (Statement of Financial Position): shows the financial condition of a business and its assets, liabilities, and owner’s equity (OE = A - L)

  • income statement: a summary of a business’s income and expenses over a certain period of time (revenue/sales, expenses, COGS)

    • COGS: cost of goods sold

  • cash flow statement: a financial statement that reports the cash moving in and out of a business (cash from operating, investing, and financing activities)

  • common-sized statements: all items are expressed as percentages with no dollar amounts shown

  • vertical analysis: reporting an amount on a financial statement as a percentage of another item on the same financial statement

  • horizontal analysis: analysis of financial statements that compares account values reported on these statements over two or more years to identify changes and trends

  • trend analysis: hypothetical extension of a past series of events into the future

5. Budgeting & Financial Management

  • zero-based budgeting: a budgeting approach in which each department starts from zero every year and must justify every item in the budget, rather than simply adjusting the previous year's budget amounts

  • long-term budgeting: planning spending over a relatively long period of time to meet financial goals

  • fixed budgeting: expenditures and revenues are projected monthly, thereby providing an estimate of cash flow; most appropriate for large, well-established sports medicine clinics during economic certainty

  • incremental budgeting: allocates increased or decreased funds to a department by using the last budget period as a reference point; only incremental changes in the budget request are reviewed

  • book value: the difference between the cost of a depreciable asset and its related accumulated depreciation

  • petty cash: an amount of cash kept on hand and used for making small payments

  • additional paid-in capital

  • unit control

6. Ratios, Metrics & Performance Measures

  • ratio analysis

  • sales-to-receivables

  • CAC: customer acquisition cost (Total Sales & Marketing Costs) / (# of New Customers Acquired)

  • ROAS: Return on Ad Spend (Revenue / Cost) x 100)

  • LTV: lifetime value (Average Order Value (AOV) x Purchase Frequency x Average Customer Lifespan) or (Average Revenue Per User (ARPU) x Gross Margin) / Customer Churn Rate)

  • gross pay:

  • net pay:

  • p-value

7. Finance, Credit & Investment

  • private equity

  • angel investor: individuals who back up emerging entrepreneurial ventures, bridging between the self-funded business stage into a stage appealing to venture capital(ists)

  • venture capital (vc)

  • venture: a risky business idea or project

  • community bank

  • trade credit

  • collateral savings

  • IPO - initial public offering

  • lock-up period

  • 5 Cs of Credit

    • Character

    • Conditions

    • Collateral

    • Capacity

    • Capital

  • buying power

  • fledgling: a relatively new startup/company lacking experience and still struggling with business ideas, model, market, and products/services

8. Legal Structure, Law & Ethics

  • LLC:

  • corporation: a legal separate entity having own rights, liabilities, and privileges, distinct from its members, additionally, it shields investors from personal liability from losses of the corporation

  • charter

  • articles of incorporation

  • incorporation fees: the fee you must pay to the state or government to incorporate a business

  • fiduciary duty

  • vicarious liability

  • Contributory negligence

  • sovereign immunity

  • Interference with Contractual Relations (a type of Economic Relations tort)

  • asset security plan

  • how to register trademarks, copyrights, patents

  • GRAS - generally recognized as safe

9. Governance, Planning & Management

  • board of directors: a group of persons elected by the stockholders to manage a corporation

  • corporate governance structures: determines the distribution of rights and responsibilities between the different parties in the organization and sets the decision-making rules and procedures

  • feasibility study: an assessment of the practicality and potential for success of a proposed business idea

  • business plan

  • continuity plan

  • safety plan

10. Operations, Supply Chain & Procurement

  • vendor

  • purchasing specialists/industrial buyers

  • direct procurement

  • indirect procurement

  • goods procurement

  • services procurement

  • bullwhip effect: distorted demand information leading to inefficiencies

11. Analytics, Forecasting & Decision Tools

  • descriptive analytics

  • diagnostic analytics

  • predictive analytics

  • prescriptive analytics

  • jury of executive opinion

  • sales force composite

  • the Delphi technique

  • survey of buyer intentions

  • regression analysis: a statistical technique for modeling the relationship between variables

  • Monte Carol simulation: repeated random sampling to model potential outcomes

12. Risk Management, Quality & Control

  • Enterprise risk management (ERM): holistic, top-down process for identifying, assessing, and managing risks across the entire organization (strategic, operational, financial, etc.)

    • Strategic Risk: Will our main business plan fail?

      • Example: A taxi company doesn't prepare for the rise of apps like Uber or Lyft.

    • Operational Risk: Will something break in our daily work?

      • Example: A factory’s main assembly machine breaks down, and they have no backup parts, so production stops for a week.

    • Financial Risk: Will we lose money or run out of cash?  

      • Example: A company sells products in Europe, but the value of the Euro drops suddenly, making their profits worth less when they bring the money back to the US.

    • Compliance Risk: Will we get in trouble with the law?

      • Example: A hospital fails to protect patient data and gets hit with a massive million-dollar government fine.

  • FMEA: risk assessment method to identify potential failures in products, processes, or systems, analyze their causes and impacts, and prioritize actions to prevent or mitigate them before they harm customers or operations

  • six sigma: a set of quality control tools that businesses use to eliminate defects and improve processes to boost profits (DMAIC)

    • Define: A team of people, led by a Six Sigma expert, chooses a process to focus on and defines the problem it wishes to solve.

    • Measure: The team measures the initial performance of the process, creating a benchmark, and pinpoints a list of inputs that may be hindering performance.

    • Analyze: Next the team analyzes the process by isolating each input, or potential reason for any failures, and testing it as the possible root of the problem.

    • Improve: The team works from there to implement changes that will improve system performance.

    • Control: The group adds controls to the process to ensure it does not regress and become ineffective once again.

  • COSO framework

  • Balanced scorecard

  • SWOT analysis: strengths, weaknesses (internal), opportunities, threats (external)

13. Labor & Employment Economics

  • Frictional unemployment

  • Structural unemployment

  • Seasonal unemployment

  • Technological unemployment

14. Inventory, Assets & Resources

  • capital resources - the tools, equipment, and buildings that are used to produce goods and services

  • perpetual inventory

15. Data Collection & Quality Tools

  • fishbone diagram: used for cause-and-effect, helps identifies many potential causes of a problem and sort them into useful categories

  • check sheet: a form for collecting data on the spot

  • histogram: graph w/ touching bars that show the distribution of a variable and cannot be rearranged

  • house of quality matrix: used during the production-planning process to determine if a product meets customer needs

  • primary data

  • secondary data

16. Technology & Security

  • Stateful firewall

17. Tax & Expense Rules

  • 10K write off in startup expense 5k write off in operational