Acronyms
B2B & B2C
What is Business to Business and Business to Customer?
The plan or recipe for how a company creates, delivers, and captures value for its stakeholders. It represents the core aspects of its business.
What a Business Model?
A written narrative, typically 25 to 35 pages long, that describes what a new business intends to accomplish and how it intends to accomplish it.
What is a Business Plan?
A written document that deals with issues such as the relative split of the equity among the founders of the firm, how individual founders will be compensated for their investments and what roles each founder will contribute to the operation.
What is a Founders Agreement or operating agreement?
This is a company’s ability to meet its short-term financial obligations.
What is Liquidity?
CAGR
Selling a durable product at a very low price or at a loss. Then selling, high-profit mandatory, complementary consumables or services for the durable product.
What is the Razor and Blades Business Model?
The two audiences for a companies business plan.
Who are the companies employees and investors or other external stakeholders?
All businesses, other than sole proprietorships that do not have employees, are required to obtain this item.
What is an Federal Employee Identification Number (also called an EIN).
An estimate of a firm’s future income and expenses, based on past performance, its current circumstances, and its future plans.
What Forecasts?
NDA
What is a nondisclosure agreement?
This model dramatically changes the way business is conducted in an industry or an important niche within an industry. Typically rare and slow to implement.
What is a Disruptive Business Model?
The last section written but the first section listed in a business plan.
What is an Executive Summary?
The simplest form of business entity involving one owner.
What is a sole proprietorship?
These are projections for future periods based on forecasts and are typically completed for two to three years in the future.
What are "Pro Forma' Financial Statements?
LLC
What is a Limited Liability Company?
The various sources, methods, or channels through which a business earns money from selling goods, providing services, or utilizing its assets.
What are Revenue Streams?
A group of companies that share the same economic activities, products and service generally in the same geographic area.
A form of ownership with two or more owners with two classes of owners. In which one class is liable only up to the the amount of their investment.
What is a Limited Partnership?
Is a snapshot of a company’s assets, liabilities, and owner’s equity at a specific point in time.
What is a Balance Sheet?
JV
What is a Joint Venture?
The path, medium, or network a company uses to create awareness, sell products, or deliver goods and services to customers. Can be both direct and indirect.
The economic, financial, regulatory, or operational obstacles that make it difficult for a new company to start competing in a specific market.
What is a Barrier to Entry (economic moats)?
For of business organization whereby members are liable for the debts and obligations of the business only up to the amount of their investment, the number of shareholders is unlimited and may be taxed as a sole proprietor or partnership.
What is a Limited Liability Company (LLC)?
Summarizes the changes in a firm’s cash position for a specified period of time and details why the changes occurred.
What is a Statement of cash flows?