Company Terms
Most projections are for a year (or “annual” projections). A “quarter” means three months.
Quarter
An individual’s self-commitment to overcome obstacles to achieve long-term goals. The ability to keep pursuing your dream despite challenges and defeats.
Grit
Unit price minus cost of goods sold.
Profit per unit
The merchandise that a company sells to customers.
Inventory
A loan that provides the borrower a maximum amount of money he/she can borrow - the borrower can then access or use that line of credit for only as much money as they need at any particular time.
line of credit
A Latin phrase (“for the sake of form”) that in business means a projection of future financial performance.
Pro Forma
A clear, concise and compelling way to describe a business or new business concept in 30 seconds
Elevator Speech
Costs that vary based on the units sold by your enterprise.
Variable costs
A complete package that supports a "Go" decision by an entrepreneur to launch a new business. A launch plan would include an Elevator Speech
Launch Plan
An individual that owns a company. Sole proprietors are taxed on the profits of the company, and are personally liable for any debts or judgments against the company.
Sole Proprietorship
A payment that is owed every month.
Obligation
A situation in which an individual might take an action to his/her advantage that would be to the disadvantage of a person or company that believes this individual is serving them.
Conflict of Interest
Units times price. If the enterprise sells more than one type of unit, then Total Revenue equals the sum of revenues created by selling each type of unit.
Total Revenue
How a business communicates to large numbers of customers, motivating them to learn more about the business and its offerings.
Marketing
When a company issues a check or makes a financial commitment for an amount greater than the amount the company has deposited in the bank.
Overdraft
The state agency that collects state taxes.
Louisisana Department of Revenues
The ability to accurately convey information. Both verbal (or spoken) and written communication skills are important.
Communication Skills
Costs that vary somewhat based on the number of units you sell.
Semi variable costs
When an entrepreneur’s actions and decisions are guided by a set of beliefs about how he / she wants the business to succeed.
Mission Driven
Assets that are not already pledged as a guarantee to repay another loan
Unencumbered
A credit-worthy individual or business with sufficient liquidity that promises to repay a loan in the event that the debtholder can't make a required payment.
Guarantor
The ability to interact in a friendly and effective way with unfamiliar people. The ability to seem welcoming and easy to talk to, even with people who are different in age, appearance or background.
Comfort Engaging with Strangers
Debt that includes a legal obligation by the borrower to repay the debt personally if the business is unable to make its scheduled debt payment.
secured debt
The hard work a small business owner puts into forming, founding and operating his/her business
Sweat Equilty
The date a loan (or debt or liability) is repaid in full.
Maturity