Business plan terms
Term start and run a business, you often need to understand business terms that may not be well defined in a standard dictionary. Our glossary of business terms provides definitions for common terminology and acronyms in business plans, accounting, finance, and other aspects of small business. Is really good but they are still many more terms that should be ck: small business glossary (terms you just might need to know) « the popular thoughts blog(). A: the balance sheet when buying a the #1 business planning software risk-free for 60 contract, no risk. Built for entrepreneurs like start and run a business, you often need to understand business terms that may not be well defined in a standard dictionary. Business plan is a written document that describes in detail how a business, usually a new one, is going to achieve its goals. A business plan lays out a written plan from a marketing, financial and operational viewpoint. Sometimes, a business plan is prepared for an established business that is moving in a new ng down 'business plan'. Business plan is a fundamental tool that any startup business needs to have in place prior to beginning its operations. Usually, banks and venture capital firms make the existence of a viable business plan a prerequisite to the investment of funds in a business. A good business plan starts with an executive summary of the business; includes a detailed description of the business, its services and/or products; and states how the business intends to achieve its goals. It should also provide at least an overview of the industry of which the business will be a part, and how it will distinguish itself from its potential ial projectionsa complete business plan must also include a set of financial projections for the business. In a business plan, a business owner projects revenues and expenses for a certain period of time, and describes operational activity and costs related to the cal considerationsthe idea behind putting together a business plan is to enable owners to have a more defined picture of potential costs and drawbacks to certain business decisions and to help them modify their structures accordingly before implementing these ideas. It also allows owners to project what type of financing will be required to get the businesses up and length of the business plan will vary greatly from business-to-business, but in general, all of the required information should fit into a 15- to 20-page document. If there are crucial elements of the business plan that take up a lot of space, such as applications for patents, they should be referenced in the main plan and included as there are any especially interesting aspects of the business, they should be highlighted, and used to attract financing. An annual review of the plan allows an entrepreneur to update it when taking evolving involving markets into consideration, and it also provides an opportunity to look back and see what has been achieved and what has ss to business - b to publication 560: retirement ... Months ago, i used this column to suggest that we need to find a better term for business planning that doesn't conjure up fear and dread like the mention of a high-school paper or graduate thesis. In the comments readers posted below that column, i saw several valiant efforts to suggest new phrases (road map and business blueprint, for example).
They essentially said business planning is too important to mess with changing the i've changed my mind -- again -- and come up with this list of essential business planning words every manager should know:1. So it has to be practical and just big enough to serve the business d: to make business planning less daunting, let's call it something else. Business strategy: a combination of strengths and weaknesses, opportunities and threats, target market, business offering and product-market fit. Business forecast: a simplified, manageable set of assumptions about future cash flow, including sales, cost of sales, expenses, assets, liabilities and capital. Marketing plan: a business plan that leaves out the overall company financial d: the top 10 business plan mistakes. Annual plan: a business plan that leaves out plans for the second and third year. A document created as output from a business plan, formatted for easy reading and highlighting past financial performance and current financial position. A document or pitch created as output from a business plan, describing a business investors will be interested in based on the specifics of that business. No matter how brilliant, beautiful or creative it might be, it isn't investor ready -- and never will be -- if it doesn't describe a business with real prospects for plan-as-you-go business d: three financial guesstimates every business plan plan-as-you-go business ad will close in 15 seconds... Login clicking "create account" i agree to the entrepreneur privacy policy and terms of ns | dictionary |. Dictionary provides definitions for 153 business for entrepreneurs who are planning to start a small included are links to four of the top business dictionary 2,500 financial and business terms campbell r. Searchable database of over 2,500 the most commonly used terms encountered by the start-up entrepreneur,The small business person and the student of business theory. Comprehensive directory of business glossaries that contain business terms and business encyclopedia offers a information on business terminology. Database of terms is basic steps in processing accounting data during an : 1) transaction occurs, 2) transaction classified ( journal), 3) recording the classified data in ledger accounts. Summary statement of assets, liabilities, and owner's equity assess the financial condition of a business. Detailed schedule of planned financial tive cycles of economic expansion and recession within ry over a measurable period of time. Term used in business planning that implies a careful application of resources to obtain a competitive advantage pation of future events or or property owned or used in business by a sole corporation, to produce wealth. In a start-up business, the amount of money required to initiate and/or operate a borrowing from basis accounting method that enters income and expenses into the payments are received or expenses conversion time required to convert raw materials into finished goods,Finished goods into sales, and sales into received payments ers.
If the to repay the loan according to the terms, the lender has right to seize the collateral and sell it to repay the er price index (cpi). Also called liquid , loans, trade credit or other obligations due for one calendar amount of money added to a budget for delays, poor weather, ic conditions, and other unforeseen total list of customers for a business, as well as the of potential customers with specific classification or buying. Usually carries the connotation of being creative, self-motivated,Entrepreneurial psychological realization by an entrepreneur that starting ing a small business is full of difficult decisions and ate workers who have not been previously exposed to the running a business are most accounting term used to describe the investment made by the stockholders of a business. Brief synopsis at the beginning of a business plan or nt that highlights key facts, issues, and such as jewelry, clothing, furniture, and kitchenware is important and price is analysis of a possible business opportunity that emphasizes ial and likely expenses, with recommendations for an assets (long term assets). Fixed not include items normally consumed during business production, such as office stationary or product raw ss expenses that do not change regardless of production decreases, for example, lease expenses, insurance, interest , salaries, utilities, etc. Retail outlet where products are sold directly to the end retail prices by sales personnel who are able to explain and purpose of the accounting record of business transactions in chronological formal listing of journal accounts in a business used for ent preparation and tax lly accepted accounting principles (gaap). Rules and procedures defined by the ting standards board (fasb) as proper accounting intangible but salable asset, such as reputation or a business, that engenders the expectation of continued client patronage if the business is sold to a potential gross revenue or sales of a business over a profit expressed as a percent of net profit before overhead (fixed operating expenses) has been sales not reduced by customer discounts, returns, other adjustments. In any business venture, there are always s that can affect the profitability of a business. Ss planners try to minimize these risks by anticipating n factors all phases of their operations and tative measures or backup plans where costs or expenditures recorded as opposed to projected agency ( service performed by a branch of a large company that be purchased from another company, such as advertising statement (profit & loss. Facility designed to encourage entrepreneurship and minimize new business formation and development, particularly for logy firms, by housing a number of budding enterprises an array of services, such as rent, secretarial services,And business counseling. Business association of two or more businesses or persons teams works together on a single project. Federal tax law giving substantial tax advantages to ed business owners and others who do not have a company . Designed to encourage self-employed business people to money for amount added to a deal to induce a potential buyer to agreement between two business enterprises allowing one to other's products or services and to use their name, trademarks,Sales literature, etc. Many small and start-up businesses adopt this applied to business formation and operation, the idea that " go wrong, will go wrong. In accounting terms, the which assets exceed liabilities on the company balance referred to as equity or owner's area of a target market where a company or product is . A note is usually a short term business loan that secured or unsecured by collateral. Note by a person or business that is due and owing; an lien that must be repaid and is amount loaned to another that is owed and payable to the holder. Bookkeeping method where only one entry is made to record ss transaction, as opposed to a double-entry system transaction is entered twice or more in related credit and g directly to the end user using a sales force that the prospect at their home or place of illustrative display of the relationships between owners s to supervisors and defined by the uniform partnership act, a partnership is "ation of two or more persons who carry on a business for profit.
It helps to answer the question,"if revenues stopped, could the business meet current assets that are readily convertible into cash? It you to compare your company with industry cost of finding customers, enticing them to buy, product or service, and collecting the amount mix of complimentary products and services a business entice sales. A business offering a product/service mix is concerned about the quality of the service than the sold (e. As contrasted with partnership amount of money invested in a business by owners at the operations, as opposed to any amounts gic agreement between two or more companies to conduct a ss process in a joint manner such as technology development,Promotion, or opening new distribution economic theory of market value where price is determined interaction of sellers and buyers to reach an equilibrium both are willing to accept. Business that has progressed beyond the startup stage and is achieve long-term growth, prosperity, and stability. Trademarks grant the owner the right to prevent using similar marks in selling or ng a new business without enough money to carry through -up phase, especially if the business is likely to e at a loss. Undercapitalization is a frequent cause of and deceptive g practices that tend to mislead potential buyers of a service or result in unfair, unethical or immoral business ted in the u. Source of business investment associated with a higher-risk conventional financial institutions are willing to bear. For the higher investment risk, a venture capitalist s some combination of equity ownership in the strategy of incorporating all aspects of management, production,Sales, and distribution within a business in order to become able to outside forces. Business that sells in large quantities and at lower prices service or self service retail outlets, jobbers, merchants,Manufacturers, industrial firms, commercial, businesses and institutions,And various other types of distributors. Undesirable in a start-up operation vity and innovation is desperately needed to survive and business or investing, the amount of profit expressed as an tage rate of the amount of capital invested (e. Planning in 30 ize your own business credit card with your ™ - eguides - bplan - community - software - services - the smbtn network of small business sites –. Business plan is a formal statement of business goals, reasons they are attainable, and plans for reaching them. It may also contain background information about the organization or team attempting to reach those ss plans may target changes in perception and branding by the customer, client, taxpayer, or larger community. When the existing business is to assume a major change or when planning a new venture, a 3 to 5 year business plan is required, since investors will look for their investment return in that timeframe. 3] for government agencies, external stakeholders include tax-payers, higher-level government agencies, and international lending bodies such as the international monetary fund, the world bank, various economic agencies of the united nations, and development ally focused business plans target intermediate goals required to reach the external goals. An internal business plan is often developed in conjunction with a balanced scorecard or a list of critical success factors. Business plans that identify and target internal goals, but provide only general guidance on how they will be met are called strategic ional plans describe the goals of an internal organization, working group or department.
The content and format of the business plan is determined by the goals and audience. For example, a business plan for a non-profit might discuss the fit between the business plan and the organization’s mission. Banks are quite concerned about defaults, so a business plan for a bank loan will build a convincing case for the organization’s ability to repay the loan. A business plan for a project requiring equity financing will need to explain why current resources, upcoming growth opportunities, and sustainable competitive advantage will lead to a high exit valuation. A business plan draws on a wide range of knowledge from many different business disciplines: finance, human resource management, intellectual property management, supply chain management, operations management, and marketing, among others. 6] it can be helpful to view the business plan as a collection of sub-plans, one for each of the main business disciplines. A good business plan can help to make a good business credible, understandable, and attractive to someone who is unfamiliar with the business. Writing a good business plan can’t guarantee success, but it can go a long way toward reducing the odds of failure. It is common for businesses, especially start-ups, to have three or four formats for the same business "elevator pitch" is a short summary of the plan's executive summary. Written presentation for external stakeholders is a detailed, well written, and pleasingly formatted plan targeted at external internal operational plan is a detailed plan describing planning details that are needed by management but may not be of interest to external stakeholders. Such plans have a somewhat higher degree of candor and informality than the version targeted at external stakeholders and l structure for a business plan for a start up venture [10]. Page and table of ss environment ments and l questions addressed by a business plan for a start up venture [11]. Are the risks and threats confronting the business, and what can be done to mitigate them? And revenue estimates are central to any business plan for deciding the viability of the planned venture. Reference class forecasting has been developed to reduce the risks of cost overruns and revenue shortfalls and thus generate more accurate business and liability issues[edit]. Externally targeted business plan should list all legal concerns and financial liabilities that might negatively affect investors. Depending on the amount of funds being raised and the audience to whom the plan is presented, failure to do this may have severe legal tions on content and audience[edit]. Disclosure agreements (ndas) with third parties, non-compete agreements, conflicts of interest, privacy concerns, and the protection of one's trade secrets may severely limit the audience to which one might show the business plan.
Alternatively, they may require each party receiving the business plan to sign a contract accepting special clauses and situation is complicated by the fact that many venture capitalists will refuse to sign an nda before looking at a business plan, lest it put them in the untenable position of looking at two independently developed look-alike business plans, both claiming originality. In such situations one may need to develop two versions of the business plan: a stripped down plan that can be used to develop a relationship and a detail plan that is only shown when investors have sufficient interest and trust to sign an business plans[edit]. The business plan itself is generally regarded as open business plan is a business plan with unlimited audience. The business plan is typically web published and made available to the free software and open source business model, trade secrets, copyright and patents can no longer be used as effective locking mechanisms to provide sustainable advantages to a particular business and therefore a secret business plan is less relevant in those ss plans are used in some primary and secondary programs to teach economic principles. Has a lunar boom town project where students of all ages can collaborate with designing and revising business models and practice evaluating them to learn practical business planning techniques and ising is the primary purpose for many business plans, since they are related to the inherent probable success/failure of the company p company ment by objectives (mbo) is a process of agreeing upon objectives (as can be detailed within business plans) within an organization so that management and employees agree to the objectives and understand what they are in the gic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. Business plans can help decision makers see how specific projects relate to the organization's strategic quality management (tqm) is a business management strategy aimed at embedding awareness of quality in all organizational processes. Tqm has been widely used in manufacturing, education, call centers, government, and service industries, as well as nasa space and science for profit businesses[edit]. For-profit business plans typically focus on financial goals, such as profit or creation of wealth. Non-profit, as well as government agency business plans tend to focus on the "organizational mission" which is the basis for their governmental status or their non-profit, tax-exempt status, respectively—although non-profits may also focus on optimizing primary difference between profit and non-profit organizations is that "for-profit" organizations look to maximize wealth versus non-profit organizations, which look to provide a greater good to society. Satires are used both to express cynicism about business plans and as an educational tool to improve the quality of business plans. For example,In his presentation, five criteria for a successful business plan in biotech, dr. Roger bernier, uses dilbert comic strips to remind people what not to do when researching and writing a business plan for a biotech start-up. Anatomy of a business plan: a step-by-step guide to building a business and securing your company’s future (6th edition). Tasmanian government project management knowledge base government project plan archived june 22, 2009, at the wayback machine. Boston college, carroll school of management, business plan project archived 2008-01-16 at the wayback machine. The business school advises students that "to create a robust business plan, teams must take a comprehensive view of the enterprise and incorporate management-practice knowledge from every first-semester course. It is increasingly common for business schools to use business plan projects to provide an opportunity for students to integrate knowledge learned through their courses. Bornstein (1993), 'the ernst & young business plan guide' (new york: john wiley and sons) isbn 0-471-57826-6.
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