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ME State Mod 1 Vocab
ME State Module 1 Vocabulary
| Term | Definition |
|---|---|
| Differentiated Offering | Different than anything else. Attracts customer and generates sales that is different from other businesses. |
| Target Market | The intended group of customers you want to serve. |
| Pro Forma | A one page financial projection that list your major revenue sources and expenses |
| Marketing Strategies | How you intend to communicate to large number of customers, motivating them to learn more about your products |
| Selling Strategies | How you move specific customers to buy from you. |
| Launch Plan | Detailed To Do List of steps you'll need to take to go from concept and funding all the way to business launch. |
| Accounting System | Software program to track financial information like budgets, expenditures, invoicing and payroll |
| Revenue | Income. The amount of money earned from the sale of products/services |
| Expense | The cost required for an item or service. The outflow of money to another person or group to pay for an item or service |
| Cost of Goods | The cost that it takes to produce a product or service. Includes material and labor |
| Personnel Cost | Money paid by an employer to an employee for work done during a period of time |
| Marketing/Sales Cost | The amount of money spent to sell product or services. Includes advertising materials, promotions, public relations, and other expenses like salaries and travel. |
| Overhead Cost | Cost of running the business that does not lead to the generation of profit. |
| Capital | The value of funds in accounts or tangible machinery/production equipment |
| Credit | The trust that allows one party to provide money or resources to another party where the second party does not reimburse the first party immediately. |
| Venture | A risky or daring journey or undertaking |
| Premium | The annual cost to you of your insurance |
| Deductible | The amount you will pay before the insurance company reimburses you for a loss. |
| Business Concept | Short, simple document that provides a clear summary of a proposed business venture |
| Vision Description | Similar to an elevator speech, a concise, compelling description of the proposed venture |
| Prospective Investors | A person or entity that may be interested in providing capital for your business venture |
| Hockey Stick Projections | Revenue growth line sort of looks like a hockey stick - flat at first and then a straight line up |
| Seasonality | Product or services that experience regular and predictable changes that recur every calendar year. |
| Competitive Reactions | How your customers and competitors respond to your marketing and selling strategies |
| Expansion Markets | The ability to go beyond your customers into markets that have not been in your typical plan. |
| Assumptions | An idea that is accepted as true or as certain to happen without proof |
| Sensitivity Analysis | A separate section in your proforma that allows you to make assumptions that will help you avoid introducing errors in calculation into the proforma spreadsheet. |
| Materiality | Financial term that means "big enough to care about" |
| Material Impact | Insignificant changes that do not hurt the overall performance of a business |
| Expenditures | The action of spending funds |
| Cumulative Cash Flow | Cash in and out of the business over a period of time |
| Burn cash | A venture spends much more money than it takes in as it establishes its operations, "captures" its first customers, and launches the marketing efforts necessary to create a market presence. |
| Nadir | The lowest point of cumulative cash flow - called the "nadir" or lowest point - is the minimum amount the venture will require in order to work through its early stages and emerge a vibrant, successful organization. |
| Variable Cost | Cost that vary depending on the rise and fall of production. |
| IT | Acronym for Information Technology |
| Free Lance Consultants | A worker that works independently by selling work or services by the hour, day or job with no intent to pursue a permanent or long-term arrangement with a single employer. |
| "Pencils Out" | A phase that means to add up or to make economic sense |
| Evocative | Bringing about strong emotions or feelings |
| Feasible | Possible to do easily or conveniently |
| Unmet customer need | Needs of customers that are currently not being addressed by your company or any company |
| Defensible competitive advantage | An advantage you have and can sustain over your competition |
| Attractive Return on Capital | The expectation of money earned based on amount of investment |
| Proprietary | Owner of information, knowledge, patent, copyright, trademark. Others are forbidden to use it. |
| Intellectual Property | A work or invention that is the result of creativity, such as a manuscript or design in which one has rights and for which one may apply for a patent, copyright, trademark |
| Tenacious talent | Every investor invest in people. Evaluate the quality of the human capital in a venture when they assess whether a business concept is doable |
| Human Capital | Team of talented, driven individuals led by a proven-effective business leader |
| Contingency | A future event or circumstances that is possible that cannot be predicted with certainty |
| Tenacity | The quality or fact of being able to endure and continue with determination |
| Stamina | The ability to sustain prolonged physical or mental effort |
| Risk | A situation involving exposure to danger. In the context of an entrepreneur, the "danger" is the loss of capital, as well as the loss of time, effort, and personal reputation in a failed venture. |
| Business Risk | Risk associated with the success of a single venture |
| Market Risk | Risk in a market sector that impact all competitors in that sector |
| Reputational Risk | Risk associated with the reputation and good standing of a venture |
| Financial Risk | Risk associated with the financial standing/performance of a venture |
| Political Risk | Risks associated with the geography in which a venture operates |
| Regulatory Risk | Risk associated due to government passing laws or regulations that could impact the ability to operate |
| Mitigation strategies | An action plan for implementing to identify, prioritize and implement actions to reduce risk |
| Financial equity | Funds contributed by the owner |
| Sweat equity | When an entrepreneur or small business leader work long hours for little or no pay to make a new venture succeed |
| Value proposition | An innovation, service or feature intended to make a company or product attractive to customers |
| Start Up | A business created from scratch |
| Acquisition | An existing business purchased from its owner. |
| Franchise | A proven business concept, an established brand, and all types of management support |
| Franchisee | The person purchasing the franchise |
| Franchisor | The person or entity offering the sale of a franchise |
| Royalties | Money owned to a Franchisor per contract agreement |
| Joint venture | A new business launched by two existing businesses |
| Economy of expression | Maximum efficiency in representing information |
Created by:
DebAnderson4699
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