money
what is account payable
What is Money owed by a company to a supplier. Example: "I purchased $20,000 of beauty supplies for my big sidewalk sale.
what is angle investors
Individuals that make small investments in an enterprise or to support an entrepreneur where they do not expect an immediate or large return on investment.
capital
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.
fixed cost
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.
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.
what is account receivable
Money owed by a customer to a company. Example: "I sold the new computer system to my client for $20,000.
elevator 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.
collateral
Equipment, inventory or other goods that are pledged to the bank in the case the company can not make a loan payment.
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.
personal capabilities
Abilities an individual develops that helps him / her succeed. Personal capabilities are developed by a combination of observation, training and hands-‐on trial and error
assets
Something of value. Anything owned is an asset. Assets can be something big (like a house) or something small (like a piece of jewelry).
mutual fund
An investment security that includes many different stocks purchased and held together. Investors purchase mutual funds because they are less risky than holding any individual stock. Example: "One stock in the mutual fund went down 50%. But because the mutual fund holds over 1000 other stocks, the value of the mutual fund went down less than 1%."
credit
Funds lent to a business with an agreement that the business will repay the lender with interest.
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
Personal Support Systems
Relationships and resources that help individuals succeed. Support relationships are often with “mentors” (experienced individuals who help you learn and succeed). Support resources include both information sources (like the LA Star Jobs website) and the opportunity to experience new things (like an internship).
bank loan
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.
partnership
When two or more individuals own a company. Partners are taxed on the profits of the company, and are personally liable for any debts or judgments against the company
Credit-‐Worthiness
A person or a business with a strong credit score and the financial resources that make it likely they will be able to repay any loan
inventory
The merchandise that a company sells to customers.
problem solving
The ability to find solutions to difficult or complex issues. The process of working through the details of a challenge or crisis – often under pressure – to reach a solution
Bond
A loan. A bond is security that investors buy and sell, that represents a legal obligation from the company issuing the bond that they will repay the funds they received when they issued the bond.
shareholders
An individual or company that owns shares in a company.
Deductible
The amount an insurance company makes a policyholder pay as part of any claim. Example: my fire insurance policy has a deductible of $500.
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.
self-motivation
The ability to pursue a task without being told to by someone else. Individuals who are self-‐motivated can find the strength to start and then finish a task without giving up