Boss Basics (Basic Concepts)
What is the main goal of a for-profit business?
To earn a profit.
What is a business plan used for?
To outline goals, strategies, and financial needs for starting a business.
What is inventory management?
The process of ordering, storing, and using a company's inventory.
What is a target market?
A specific group of consumers a business aims to reach.
What is revenue?
The total income a business earns from sales.
What is the definition of entrepreneurship?
The process of starting and operating your own business.
What is bootstrapping?
Starting a business with minimal outside funding.
What is a supply chain?
The system of organizations, people, activities, and resources involved in delivering a product or service.
What are the 4 Ps of marketing?
Product, Price, Place, Promotion
What is profit?
Revenue minus expenses.
What does ROI stand for in business?
Return on Investment
What is the first step in developing a business idea?
Identifying a need or problem in the market.
What is the purpose of a standard operating procedure (SOP)?
To provide step-by-step instructions for routine operations.
What is brand identity?
The visible elements of a brand, such as logo, colors, and design.
What is the purpose of a budget?
To plan and control spending.
What is a mission statement?
A brief statement that defines the purpose and values of a business.
What is market research?
The process of gathering information about target customers and competitors.
What’s the term for the physical location and setup where business is conducted?
Business facility or workspace.
What is the purpose of a sales funnel?
To guide potential customers through the buying process.
What are fixed expenses?
Costs that do not change month to month (e.g., rent).
What are the four main types of business ownership?
Sole proprietorship, partnership, corporation, and LLC
What government-issued number is used to identify a business for tax purposes?
EIN (Employer Identification Number).
What is quality control?
Ensuring products or services meet defined standards.
What does CRM stand for in sales?
Customer Relationship Management.
What financial statement shows a company’s assets, liabilities, and equity?
Balance sheet.