A-Z List of Common Business Terms
A
Above the line - A term used in advertising to refer to media channels such as television, radio, and print that reach a large audience.
Accounts payable - Money that a company owes to its vendors or suppliers for goods or services.
Accounts receivable - Money that a company is owed by its customers for goods or services provided.
Acquisitions - The process of acquiring ownership or control of another company through purchase or merger.
Ad copy - The text or written content used in advertising to promote a product or service.
Advertising - A form of marketing communication that involves promoting a product, service, or idea through various media channels to reach a specific target audience.
Affiliate marketing - A marketing strategy that involves partnering with other businesses or individuals.
Agile - A methodology for software development that emphasizes flexibility and collaboration.
Angel investor - An individual who provides funding for startups in exchange for ownership or equity in the company.
Artificial Intelligence (AI) - The field of computer science that deals with the creation of intelligent machines that can perform tasks that typically require human intelligence, such as visual perception, speech recognition, decision-making, and language translation. AI uses algorithms and data to learn from experience and improve performance over time. AI has applications in many industries, including healthcare, finance, transportation, and retail, among others.
Assets - Anything a company owns that has value and can be used to generate income or provide some other benefit.
Automated marketing - The use of software and technology to automate marketing tasks, such as email campaigns, social media posts, and lead generation.
B
B2B (business to business) - B2B refers to business transactions and relationships between companies, rather than between businesses and individual consumers.
B2C (business to client) - B2C refers to business transactions and relationships between businesses and individual consumers.
Backward integration - A business strategy in which a company acquires or merges with a supplier or distributor to gain more control over its supply chain.
Balance sheet - A financial statement that shows a company's assets, liabilities, and equity at a given point in time.
Benchmarking - The process of comparing a company's performance or practices to those of other companies in the same industry or market.
Blog - A regularly updated website or web page that features a series of posts or articles written by an individual or group on a particular topic or subject.
Board of directors - A group of individuals elected by shareholders to oversee the management of a company.
Bootstrapping - Bootstrapping is a method of starting and growing a business using one's own resources, without external funding or investment.
Brand - A company's unique identity that distinguishes it from its competitors.
Brand positioning - Brand positioning is the process of defining a brand's unique value proposition and market positioning, based on its target audience, competitive landscape, and key differentiators.
Brand strategy - The plan or approach a company uses to create, develop, and promote its brand, including its positioning, messaging, and visual identity.
Brand value - The perceived worth of a brand, which can be based on factors such as brand awareness, customer loyalty, and the quality of the products or services offered.
Break-even point - The point at which a company's total revenue equals its total costs.
Business plan - A written document outlining a company's goals, strategies, and tactics for achieving success.
C
Capital - The money or other resources a company uses to finance its operations and growth.
Cash conversion cycle - The amount of time it takes a company to convert its investments in inventory and accounts receivable into cash.
Cash flow - The amount of cash coming in and going out of a business over a period of time.
Competitor analysis - Competitor analysis is the process of researching and analyzing the strengths, weaknesses, strategies, and market positioning of competitors, with the goal of gaining a competitive advantage.
Content - Content refers to the digital media and information that is presented on websites, social media, email, and other digital channels to communicate a message or promote a product or service.
Content calendar - A schedule or plan that outlines the topics, themes, and content types that will be created and published over a certain period of time, often used in content marketing and social media marketing.
Copywriting - Copywriting is the art and science of writing compelling and persuasive marketing copy to promote a product or service.
Corporate culture - The shared values, beliefs, and practices of a company and its employees.
Cost of goods sold (COGS) - The direct costs incurred by a company to produce or purchase the products or services it sells.
Crowdfunding - The practice of raising funds from a large number of individuals, often through online platforms.
Customer acquisition cost (CAC) - The cost of acquiring a new customer, including marketing, sales, and other expenses.
Customer relationship management (CRM) - The process of managing and analyzing a company's interactions with customers and potential customers.
D
Debt - Money that a company owes to lenders, bondholders, or other creditors.
Debt financing - The process of raising funds by borrowing money from lenders or investors, with the expectation of repaying the principal plus interest.
Demographics - Demographics are statistical characteristics of a population, such as age, gender, income, education, and ethnicity, that are used to identify target audiences and analyze market trends.
Depreciation - The decrease in value of an asset over time due to wear and tear or obsolescence.
Digital assets - Any digital content or intellectual property that a company owns or has the rights to, such as website designs, social media accounts, and digital marketing materials.
Digital marketing - Digital marketing refers to the use of digital channels such as websites, social media, email, search engines, and mobile devices to promote products or services.
Direct mail - A form of direct marketing that involves sending promotional materials, such as flyers or brochures, through postal mail to a targeted audience.
Direct marketing - Direct marketing is a form of advertising in which companies communicate directly with customers through mail, email, phone, or other channels, to promote products or services.
Distribution channel - The network of intermediaries through which a product or service is delivered from the producer to the customer.
Diversification - A risk management strategy in which a company invests in multiple products, services, or markets to reduce its exposure to any single point of failure.
Dividend - A payment made by a company to its shareholders as a share of the profits.
DTC (direct to consumer) - DTC refers to a business model in which companies sell products directly to consumers, bypassing traditional retail channels.
E
Earnings per share (EPS) - A company's net income divided by the number of outstanding shares of stock, used to measure profitability on a per-share basis.
E-commerce - The buying and selling of goods and services over the internet.
Economies of scale - The cost advantages that result from producing goods or services on a larger scale, which can reduce per-unit costs and increase profitability.
Editorial calendar - An editorial calendar is a tool used by marketers to plan and organize content creation and distribution across various channels, such as websites, blogs, social media, and email.
Email - An email is a digital message sent and received through the internet using electronic mail software or webmail services.
Email marketing - A form of direct marketing that involves sending promotional emails to a targeted list of subscribers or customers.
Entrepreneur - A person who starts and manages a new business venture with the aim of making a profit.
Equity - The value of a company's assets minus its liabilities.
Equity financing - The process of raising funds by selling ownership shares or equity in a company.
Executive summary - A brief summary of a business plan that outlines the main points and objectives.
Exit strategy - A plan for how a company's owners or investors will eventually sell their ownership stake and realize a return on their investment.
F
Financial statements - Reports that provide information about a company's financial performance, including its income, expenses, and profits.
Fixed costs - Costs that do not change regardless of the level of production or sales, such as rent, salaries, and insurance.
Franchise - A business model where an entrepreneur buys the right to use an established brand and system to sell goods or services.
Frictional unemployment - Temporary unemployment resulting from people entering or leaving the labor force, or from mismatches between workers' skills and job requirements.
G
Goodwill - The intangible value of a company's reputation, brand recognition, customer loyalty, and other factors that contribute to its long-term success.
Gross profit - The profit a company makes after deducting the cost of goods sold from its revenue.
Growth strategy - A plan for expanding a company's operations, markets, or product lines to increase profits.
Guerilla marketing - Marketing strategy that relies on unconventional and creative tactics to promote a product or service. It involves using low-cost or no-cost methods such as grassroots campaigns, viral marketing, and street art to engage consumers and create buzz around a brand.
H
Horizontal integration - A business strategy in which a company acquires or merges with a competitor in the same industry to gain market share and reduce competition.
Human resources - The department in a company responsible for managing employee relations, hiring, and training.
I
Inbound marketing - A marketing strategy that involves attracting potential customers through content marketing, search engine optimization, and other tactics that pull customers in rather than pushing promotional messages out.
Income statement - A financial statement that shows a company's revenue, expenses, and profits over a period of time.
Inflation - A sustained increase in the general price level of goods and services over time, which can erode purchasing power and affect business operations.
Influencers - Influencers are individuals or organizations with a large and engaged following on social media, who are able to influence the opinions and behaviors of their followers. They are often used in marketing campaigns to promote products or services to their audience.
Infographic - A visual representation of data or information, designed to communicate complex concepts or data in an easy-to-understand format.
Initial public offering (IPO) - The first sale of a company's stock to the public, raising capital for the company.
Intellectual property - Intangible assets that a company owns, such as patents, trademarks, and copyrights.
Interest - The cost of borrowing money from lenders or investors.
Inventory - The stock of goods a company has on hand and available for sale.
J
Job analysis - The process of defining the responsibilities and requirements of a job position.
Joint venture - A business partnership where two or more parties agree to work together on a specific project or goal.
Jurisdiction - The geographic area or legal authority in which a company operates.
K
Key account management - A strategy for managing relationships with a company's most important customers or clients, often involving dedicated account managers and customized services.
Key performance indicators (KPIs) - Metrics that measure a company's performance against its goals and objectives.
Knowledge management - The process of creating, sharing, and using knowledge and information within a company.
Knowledge worker - A worker who relies on intellectual abilities and expertise to perform their job.
L
Landing page - A landing page is a standalone web page designed for a specific marketing campaign or product, with the goal of converting visitors into leads or customers.
Leadership - The ability to inspire and motivate others towards a common goal or vision.
35. Liabilities - The debts and financial obligations that a company owes to creditors or others.
Lean startup - A methodology for starting and growing a company that emphasizes rapid experimentation, customer feedback, and continuous improvement.
Leverage - The use of borrowed money or other financial instruments to increase the potential return on an investment.
Limited liability - A legal concept that limits the liability of company owners or shareholders to the amount of their investment, protecting their personal assets from business-related debts or lawsuits.
Limited liability company (LLC) - A business structure that provides limited liability protection to its owners while also allowing for pass-through taxation.
Listing site - A website or online platform that lists and promotes products or services from various businesses or individuals.
Logistics - The process of planning, coordinating, and executing the transportation, storage, and distribution of goods or products.
M
Marketing - The process of promoting and selling products or services to customers.
Marketing campaign - A marketing campaign is a coordinated set of activities and tactics designed to promote a product, service, or brand over a specific period of time.
Marketing collateral - Any materials used to promote a company's products or services, such as brochures, flyers, and sales sheets.
Marketing mix - The combination of product, price, promotion, and distribution strategies used to promote a product or service to target customers.
Market research - The process of gathering information about a market, including its size, competitors, and consumer behavior.
Market segmentation - The process of dividing a larger market into smaller groups of consumers with similar needs or characteristics, to better target marketing efforts.
Media - Media refers to the channels or platforms used to communicate and distribute content, such as TV, radio, newspapers, magazines, websites, social media, and mobile devices.
Media buy - A media buy is the process of purchasing advertising space or time on various media channels, with the goal of reaching a targeted audience and achieving specific marketing objectives.
Mergers and acquisitions (M&A) - The process of combining two or more companies through a merger or acquisition to create a larger or more diversified business.
Minimum viable product (MVP) - A minimum viable product is a version of a product that has enough features to be released to the market and tested by early adopters, with the aim of validating the product idea and collecting feedback for further development.
Mission statement - A statement that defines a company's purpose, values, and goals.
Mockup - A mockup is a visual representation or prototype of a product or design, used to showcase its features and functionality.
Multi-channel marketing - Multi-channel marketing is a strategy that involves reaching customers through multiple channels, such as email, social media, search engines, direct mail, and mobile devices, to maximize the effectiveness of marketing efforts.
N
Net income - The profit a company makes after deducting all expenses and taxes.
Net present value (NPV) - A financial measure that calculates the current value of future cash flows, adjusted for the time value of money.
Non-disclosure agreement (NDA) - A legal contract that prohibits the disclosure of confidential information shared between two or more parties.
Nonprofit organization - A organization that exists for a social or charitable cause, with the goal of serving the public rather than making a profit.
Niche - A specialized market segment with unique needs or preferences.
O
Operating expenses - The costs a company incurs in its day-to-day operations, such as rent, salaries, and utilities.
Outbound marketing - A marketing strategy that involves sending promotional messages or materials to potential customers through various channels, such as advertising, direct mail, or telemarketing.
Outsourcing - The practice of hiring an external company to perform a business function, such as customer service or IT.
P
Partnership - A business structure where two or more individuals or entities share ownership and responsibility for the business.
Patent - A legal right granted to an inventor or company to prevent others from making, using, or selling a particular invention or process.
Podcast - A digital audio file that can be downloaded and listened to on a computer or mobile device, often featuring discussions or interviews on a particular topic or subject.
Price elasticity - The degree to which a change in price affects the demand for a product or service.
Price skimming - A pricing strategy in which a company sets a high initial price for a new product or service and gradually lowers it over time.
Print advertising - A form of advertising that uses print media, such as newspapers, magazines, or billboards, to promote a product, service, or idea.
Profit margin - The percentage of revenue that remains as profit after deducting all expenses.
Product development - The process of creating and improving products or services.
Psychographics - Psychographics are psychological characteristics of a population, such as values, attitudes, interests, and lifestyles, that are used to identify target audiences and analyze consumer behavior.
Public relations (PR) - The practice of managing a company's reputation and relationships with stakeholders, including customers, investors, and the media.
Q
Quality control - The process of ensuring that a product or service meets the desired level of quality and reliability.
Quantitative analysis - The use of mathematical and statistical methods to analyze and interpret data.
Quota - A specific target or goal that a company sets for its employees to meet.
R
Recession - A recession is a period of economic decline characterized by a contraction in business activity, widespread job losses, and a decline in GDP and consumer spending.
Return on assets (ROA) - The ratio of a company's net income to its total assets, used to measure the efficiency of asset utilization.
Return on investment (ROI) - A measure of the profitability of an investment, calculated as the net profit divided by the cost of the investment.
Revenue - The income a company generates from the sale of goods or services.
Risk management - The process of identifying, assessing, and mitigating potential risks to a company's operations or finances.
S
SaaS (Software as a Service) - A software delivery model in which software is hosted and delivered over the internet on a subscription basis.
Sales forecast - A prediction of future sales based on historical data, market trends, and other factors.
Sales funnel - The process of converting prospective customers into paying customers, usually through a series of marketing and sales activities.
Scalability - The ability of a company or product to handle increased demand without a proportional increase in costs or resources.
Search engine marketing (SEM) - Search engine marketing is a form of digital marketing that involves promoting websites or online content through paid advertising on search engines, with the goal of driving targeted traffic and conversions.
Search engine optimization (SEO) - Search engine optimization is the process of optimizing a website or online content to increase its visibility and ranking on search engine results pages, with the goal of attracting more organic traffic.
Seed funding - The initial capital provided to a startup to help it develop a product or service and start operations.
Shareholder - An individual or entity that owns a share of a company's stock.
Skill stacking -The process of developing a unique combination of skills that sets an individual apart from others in their field or industry, allowing them to offer a more valuable service or product.
Small business - A business that is independently owned and operated, typically with fewer than 500 employees.
SMB (small medium business) - SMB refers to small and medium-sized businesses, typically defined as those with fewer than 500 employees.
Social commerce - Social commerce is the use of social media platforms to promote and sell products or services, often by integrating social features such as reviews, recommendations, and shopping carts.
Social entrepreneurship - The practice of using business principles to solve social or environmental problems.
Social media - Social media refers to websites and applications that enable users to create and share content or to participate in social networking.
Stakeholder - Any people or groups who are positively or negatively impacted by a project, initiative, policy or organization. They could be internal (people within your organization) or external (people outside of your organization).
Supply chain - The network of companies and organizations involved in the creation and delivery of a product or service.
SWOT analysis - An assessment of a company's strengths, weaknesses, opportunities, and threats to inform strategic planning and decision-making.
T
Target audience - The specific group of people that a company or marketer is trying to reach and engage with through their marketing efforts.
Target market - The specific group of consumers or businesses that a company aims to sell its products or services to.
Taxation - The process of levying taxes on individuals and businesses by a government or other authority.
Text message marketing - Text message marketing is a form of mobile marketing that involves sending promotional messages and offers to customers via SMS or MMS.
Third-party marketplace - A third-party marketplace is an online platform that enables businesses to sell products or services through a centralized marketplace, managed by a third-party operator.
Time-to-market - The amount of time it takes for a company to bring a product or service to market, from conception to launch.
Total quality management (TQM) - A management approach that focuses on continuous improvement of product quality and customer satisfaction through all aspects of the organization.
Trademark - A symbol, logo, or other identifying mark used by a company to distinguish its products or services from others.
Trade secret - Confidential information that gives a company a competitive advantage and is protected by law.
U
Unique selling proposition (USP) - A factor that sets a company's products or services apart from its competitors and makes them more appealing to consumers.
Unsecured loan - A loan that is not backed by collateral or assets.
Upselling - A sales technique used to encourage customers to purchase additional or higher-end products or services.
Use case - A use case is a written description of how a user interacts with a system or product to accomplish a specific task or goal.
Utility - The value or usefulness that a product or service provides to consumers.
V
Value chain - The series of activities involved in producing and delivering a product or service, from raw materials to the final customer.
Value proposition - The unique value that a company's products or services provide to its customers.
Venture capital - Money invested in a startup or early-stage company by investors who expect high returns on their investment.
Viability study - A viability study is an analysis of the feasibility and potential profitability of a business idea or project, based on market research, financial projections, and other relevant factors.
Video pre-roll - An advertisement that plays before a video content, often used in digital marketing.
Virtual team - A group of individuals who work together on a project or task but are located in different geographic locations and communicate primarily through technology.
Vision statement - A statement that outlines a company's long-term goals and aspirations.
Vlog - A video blog or video log, typically featuring a person sharing their thoughts, experiences, or ideas on a particular topic or subject.
W
Website - A website is a collection of web pages and related content that is accessible via the internet and presented under a unique domain name.
Website analytics - The collection, analysis, and interpretation of data related to website usage and user behavior, used to optimize website performance and user experience.
Website optimization - The process of improving a website's design, content, and performance to increase traffic and conversions.
White paper - A detailed report or guide that provides in-depth information on a particular topic, often used to position a company as a thought leader or expert in their industry.
Wholesale - The sale of goods in large quantities at a discounted price to retailers or other businesses.
Workforce planning - The process of identifying and forecasting a company's future staffing needs and developing strategies to meet those needs.
Working capital - The difference between a company's current assets and current liabilities, used to measure its short-term financial health and liquidity.
X
X-factor - A unique and compelling quality that sets a company, product, or service apart from others in the market.
Y
Yield - The return on investment, expressed as a percentage of the amount invested.
Yield curve - A graphical representation of the relationship between interest rates and the time until maturity of bonds.
Yield management - A pricing strategy used to maximize revenue by adjusting prices based on demand and availability of products or services.
Z
Zero-based budgeting - A budgeting approach that requires every expense to be justified and approved anew for each budget period, rather than using previous budgets as a baseline.
Zero-sum game - A situation in which one person's gain is always matched by another person's loss.
Zoning - The process of dividing land into specific zones or districts with designated allowable uses and building codes.
