A
Capital expenditures
Expenditures on equipment the business will use for many years.
Differentiated
Offering
Distinguishing
a
product
or
service
"different
than
anything
else,"
attracting
customers,
generating
sales
and
serving
as
the
foundation
for
a
thriving
business.
Equity
Funds
contributed
by
investors
to
a
business.
Investors
contribute
capital
to
a
business
because
they
expect
a
significant
return
on
their
investment
when the
business
succeeds.
Grit
An
individual’s
self-‐commitment
to
overcome
obstacles
to
achieve
long-‐term
goals.
The
ability
to
keep
pursuing
your
dream
despite
challenges
and
defeats.
Perseverance,
resilience
and
backbone.
Inventory
The merchandise that a company sells to customers
Brokerage
A company that provides individuals and companies with access to financial markets.
Differentiation
The
act
of
making
a
business
different
(and
presumably
more
attractive
to
target
customers)
than
any
competitor.
Extended payment terms
An
option
a
supplier
might
grant
a
company
to
pay
their
bills
later
than
they
normally
would.
Example:
"I
usually
have
to
pay
my
supplier
within
30
days
of
receiving
their
goods.
But
if
I
order
extra
for
a
big
sale
that
features
their
product
my
supplier
gives
me
extended
payment
terms
-‐
60
days
-‐
so
I
don't
run
out
of
money
before
the
sale."
Go/No go
The
decision
point
at
which
an
entrepreneur
makes
the
final
decision
on
whether
or
not
to
launch
a
new
enterprise
or
abort
the
effort
due
to
unfavorable
market
research
or
pro
forma
projections.
Legal filings
Required
forms
that
a
company
must
complete
and
submit
to
the
appropriate
government
agency.
Bank loans
Debt From A Bank. Banks Require Much More Information From Potential Borrowers, And Take More Time To Make A Lending Decision Based On A Great Deal Of Analysis. Therefore Bank Loans Are Less Expensive Than Online Lines Of credit.
dividend
Money
paid
by
a
company
to
a
person
who
owns
stock
in
that
company.
Dividends
are
optional
–
many
companies
do
not
pay
dividends.
Dividends
are
typically
paid
every
three
months
(which
is
called
a
“quarter,”
since
three
months
is
a
quarter
of
a
year)
or
annually.
fairness
Treating stakeholders as the entrepreneur would treat him/her
geaux BIZ Portal
A
computer
portal
offered
by
the
Louisiana
Secretary
of
State
that
enables
entrepreneurs
to
go
to
a
single
source
to
learn
which
forms
they
need
to
file,
to
file
the
forms
required
by
the
Secretary
of
State,
and
to
determine
which
other
government
agencies
they
may
need
to
interact
with.
Liability
An
obligation
you
have
to
pay
someone
else
money.
Also
called
a
debt
or
a
loan.
Bond
A loan. A bond is security that inversors buy and sell, that represents a legal obligation from the company issuing the bond that they will repau the funds they recived when they issued the bond.
Elavator speech
A
clear,
concise
and
compelling
way
to
describe
a
business
or
new
business
concept
in
30
seconds;
a
differentiating
vision
to
encourage
potential
investors
or
employees
to
learn
more.
fiscal year
The
12
month
period
a
company
uses
to
report
financial
results.
A
fiscal
year
can
be
the
same
as
a
calendar
year
(January
through
December),
or
any
other
12
month
period
that
makes
sense.
Example:
a
gift
store
chain
sells
most
of
its
items
during
the
Holiday
season
and
then
in
clearance
sales
during
January.
Therefore
the
gift
store
chain
uses
a
fiscal
year
of
February
1
-‐
January
31
so
that
its
year-‐end
accounting
doesn't
interfere
with
its
selling
efforts.
Individual retirement account or ira
A
special
account
where
individuals
can
deposit
retirement
funds
that
can
grow
tax-‐deferred
until
they
withdraw
them
after
they
retire.
The
advantage
of
an
IRA:
there
are
no
annual
income
taxes
on
any
dividends
or
profitable
sales
that
an
IRA
makes
-‐
the
money
remains
in
the
account
and
only
gets
taxed
when
the
individual
retires.
If
an
individual
withdraws
money
from
an
IRA
before
he/she
retires
they
are
forced
to
pay
the
IRS
significant
penalties
for
early
withdrawal.
Internal revenue service or irs
The federal agency that collects federal taxes and performs audits
Account Payable
Money owed by a company to a supplier. Example: "I purchased $20,000 of beauty supplies for my big sidewalk sale. My supplier gave me 60 days to pay for this huge order. That $20,000 is now an Account Payable for my company. The supplier trusts me to pay this account payable on the terms we agreed to."
Engaging questions
Open
ended
questions
that
prompts
more
than
a
"Yes"
or
"No"
response.
Engaging
questions
give
entrepreneurs
more
information
they
can
use
to
help
them
frame
their
differentiating
offering
and
launch
their
business.
Ficed costs
Costs
that
do
not
vary
based
on
the
units
sold
by
enterprise.
Fixed
costs
are
often
incurred
at
the
start
of
the
enterprise,
before
it
is
known
how
well
the
enterprise
will
perform.
Example:
when
you
sign
your
lease,
your
store
rent
is
now
a
fixed
cost
that
will
not
vary
based
on
how
many
units
you
sell.
Installment payment
Debt
owed
to
someone
that
is
paid
monthly.
Examples:
your
car
or
truck
payment,
your
credit
cards
and
your
mortgage
are
all
paid
in
monthly
installment
payments.
Launch Plan
A
complete
package
that
supports
a
"Go"
decision
by
an
entrepreneur
to
launch
a
new
business.
A
launch
plan
would
include
an
Elevator
Speech,
supporting
Market
Research
conclusions,
an
Organizational
Plan
(including
an
organizational
chart
and
a
Human
Capital
plan
for
attracting
talented
team
members),
a
Marketing
and
Sales
Plan,
and
pro
forma
financial
projections.