Vocabulary
The point where revenues equal expenses
Breakeven point
A plan that outlines a company's marketing strategies
Marketing plan
The person in charge of a company's finances
CFO
A one page document with key information commonly seen in a business plan
Lean canvas
The terms for selling to another business and for selling to customers and for selling to government
B2B, B2C, B2G
Financial statement that shows a business's assets, liabilities and equity
Balance sheet
A persuasive speech intended to entice a potential customer to buy a product
Sales pitch
The cost of acquiring a new customer
Customer acquisition cost
The term that refers to seeing a potentially profitable business idea
Opportunity
A type of ownership in which the business is a separate entity from the owners with the downside that profits are taxed when earned by the business and again when shared with the owners. Has limited liability.
C corporation
A measure of how quickly a business is using up cash
Burn rate
The name for the people most likely to purchase your product
Target market
Costs that remain the same from month to month
Fixed costs
When a business has a product that sells well because it is filling a need of consumers
Product market fit
The person who reports to the Board of Directors; oversees business operations; makes major decisions for the business
CEO
Data that refers to particular groups within the population such as age
Demographics
The 4 Ps of marketing
Product, place, price and promotion
Expenses incurred for running day to day tasks
Operating costs or operating expenses
The term for how a business will sell its product to the consumer
Sales channel
The person responsible for overseeing day to day functions of the business.
COO
A person who starts and runs their own business
Entrepreneur
The price strategy in which you sell for a very low price in an attempt to gain market share
Penetration pricing
Costs that change depending on the amount of goods or services produced
Variable costs
The term for the value provided to the customer by a product
Value proposition
A business that uses the branding of an existing business; has higher start up costs but lower risk because of brand recognition
Franchise