PLANNING

A theory which states 20% of effort yield 80%.

80/20 RULE

A term which means consider all your options before making a decision.

A plan which charts details of all aspects of a current or proposedbusiness including vision, product/services, goals, projected results, marketing, and customer market.

A plan which outlines the marketing strategy, promotional activities,tactics, and how to offer products or services to customers.

Becoming a business owner involves more than just throwingmoney and ideas on the table. It requires understanding of theindustry dynamics; how the corporate environment operates andinteracting with some pretty scary (financial) people. To preventyou from appearing clueless, we’ve listed some terms whichare often misunderstood or misinterpreted by business owners,and professionals alike in the field.

A company which supplies office space, marketing services, etc. for startups in exchange for payment.

A company which acts as a support to startups to help them develop and grow sometimes at a nominal fee.

GENERATION X

MILLENENIALS

A term for people born during the 1960s and 1970s and often described as disaffected and irresponsible.

Also known as Gen Y, it’s a term for people born between 1982 and 2004 following Generation X.

GLOCALIZATION

LOCALIZATION

A term used for a global company which adapts its management and production practices to suit local conditions.

The process of adapting a product or marketing activities to a specific local market.

MARKETING

The first stage of testing anew product, service or software

in uncontrolled environment.

ALPHA TEST

BETA TESTThe second test of a product, service or software under controlled actual

usage before the final version is released.

Something or someone which makes people think of a particular product.BRAND ASSOCIATION

BRAND LOYALTY

A public announcement to attract attention with the purpose of selling products or services to potential customers.

ADVERTISING

MARKETINGA set of planned activities that is associated with selling a product or

service to potential customers including advertising, PR, and promotion.

A less personal way of marketing and advertising through mass-media such as television, radio, newspapers, magazines, Internet etc.

ATL (ABOVE THE LINE)

BTL (BELOW THE LINE)A personalized approach using non-media marketing tactics such as

direct-mail, e-mail, exhibitions, incentives, brochures, and PR etc.

BRAND IDENTITY

LOGOA graphical mark used by a company to identify its organization, product or brand. This can be a symbol, lettermark, logotype, or

combination of them.

The practice of supplyingofficial products throughunofficial channels.

GRAY MARKET

BLACK MARKETUnauthorized business transactions which occur outside the government’s sanctioned channels or jurisdictions.

MANAGING

Business transactions or activities among businesses only e.g. auto parts manufacturers.

B2B (BUSINESS TO BUSINESS)

The transactions or selling activities from businesses to consumers. E.g. retailers

B2C (BUSINESS TO CONSUMER)

Selling activities which involve from consumer TO consumer e.g. car boot sales.

C2C (CONSUMER-TO-CONSUMER)

A trade agreement which involves two parties, companies, countries, etc.

BILATERAL AGREEMENT

FREE TRADE AGREEMENTA trade agreement among countries which have no price controls in the

form of quotas or tariffs.

In the UK, the owners of a limited company have limited liability if the company gets into debt.

LIMITED COMPANY

LIMITED LIABILITY COMPANYIn the US the owners and/or shareholders of a limited company is not

liable for the company’s debts.

When a management team from outside a company buys more than 50% of the company with the motive to manage it through majority

shareholding.

MANAGEMENT BUY-IN

MANAGEMENT BUY-OUTWhen all or part of a company is bought by the company's

existing managers.

An organization or individual delegating a task to a large number ofprofessionals via the Internet with the aim of getting the task done,

usually without pay.

CROWDSOURCING

OUTSOURCINGThe act of purchasing a service from an outside vendor instead of an

internal resource with the aim to reduce organizational cost.

A company that is controlled partly or completely by a holding or parent company.

DAUGHTER COMPANY

SISTER COMPANYA subsidiary company that is related by virtue of being owned by

the same parent company and can be independent in operation.

DEBRIEFING

DELEGATIONAn assignment of responsibility or task, usually by a manager, to a

subordinate.

A meeting or interview in which a person or group of people report about a task or mission just completed or attempted.

The strategy of growing a business or brand by growing its range of products, services, investments, into new markets.

DIVERSIFICATION

DIVERSITYRefers to employment policy or terms within an organization to

include a mix of employees from different ethnicity, age group, race, gender, and/or religion.

FINANCING

When the employees of the company is allowed to purchase 50% or more of the company’s shares and gain control of the company.

EMPLOYEE BUYOUT

EMPLOYEE OWNERSHIPA business model in which employees hold a majority of shares of

the company; this encourages loyalty, fairness in management.

An investor who works with a group of investors to provide pooled capital for startups and small business.

VENTURE CAPITALIST

ANGEL INVESTORAn investor who privately funds and ready to invest in startups and small enterprises.

ACCRUAL

Real costs, sales, etc., that have occurred, rather than estimations or expectations.

The accumulation of payments or benefits over time.

ACTUALS

Tangible and intangible items owned by an individual, company, organization, etc.

ASSETS

The net worth of a business, including assets, cash, property, etc., minus liabilities.

CAPITAL

Overhead costs which are incurred by a business regardless whether it is generating income or not. E.g. gas, water, rent etc.

FIXED COSTS

Costs which are directly proportionate to the production output and which may increase or decrease depending on demand. e.g. wages, packaging, etc.

VARIABLE COSTS

A steady source of income which is the main earning stream for the business.

CASH COW

The movement of liquid cash into and out of a company.CASH FLOW

The process of controlling expenditures in a company to ensure the organization does not exceed its budget.

COST CONTROL

The act of reducing costs by reducing expenditures.COST CUTTING

SOURCES:

http://www.businessballs.com/business-dictionary.htmhttp://articles.bplans.com/business-term-glossary/ http://www.investopedia.com/terms/a/angelinvestor.asp

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A brand identity is a company’s visual perception of what it stands for. It includes logo, color, stationery, typeface etc.

When a consumer repeatedly buys a particular brand of product and is reluctant to switch to another brand.

PEST (Political, Economic, Social and Technology) is an analytical framework for analyzing a business within its political, economic, social and technological trends and environment.

PEST ANALYSIS

SWOT ANALYSISSWOT (Strengths, Weaknesses, Opportunities and Threats) is analytical framework for identifying organizational weaknesses and growthopportunities.

The operating income less taxes and interest.NET PROFIT

The percentage of what is left from a company's sales after cost of goods sold is paid out.

GROSS PROFIT MARGIN