click below
click below
Normal Size Small Size show me how
EII OBJ 1.01
LAP Sm-007 Nature of Business Plan
Term | Definition |
---|---|
Accounting | The process of keeping and interpreting financial records |
Appendix | A segment added to the end of a document; includes supporting information |
Balance Sheet | A financial statement that captures the financial condition of the business at that particular moment |
Barrier to (market) entry | Anything that blocks the way or makes it more difficult to enter a particular market |
Bottom line | Net outcome |
Business model | The company's method or plan for making money |
Business plan | A company's blueprint for success; shows how the business works now and how it is intended to work in the future; the written business model |
Business structure | The company's configuration of employees for accomplishing specific business tasks; how the business is organized |
Capital investment | The amount of money the business has invested in its goods and other property |
Capital structure | The organization of the influx and outflow of the company's money, including where the money goes on a regular basis; how a business pays for its operations |
Cash flow | The movement of funds into and out of a business; determines the amount of cash the business has to work with at any given time |
Cost estimate | A ball-park figure (or guess) of how much will be spent on a given activity |
Equity | Assets minus liabilities; also known as stockholders' (or shareholders') equity, book value, and net worth |
Executive summary | The most important part of a company's business plan because it gives an overview of the entire document; used to determine whether it is worthwhile to read any further |
Finance | The process of obtaining funds and using them to achieve the goals of the business |
Financial plan | The part of a company's business plan that shows how the business has performed (or is likely to perform) financially; how a business intends to use its money |
Financial resources | All the sources of money available to a business or project |
Financing costs | Funding a business activity or project through debt, equity, or venture capital |
Fixed assets | Items of value a business owns that are not expected to change, e.g., buildings |
Funding | Money available to a business from one or more sources |
Human resources | People who work to produce goods and services |
Income statement | A financial summary that shows how much money the business has made or has lost over a period of time; also called the profit-and-loss statement |
Letter of intent | A document communicating what a person or business intends to do within (or during) a specific timeframe |
Liabilities | Responsibilities of the business, especially legal responsibilities |
Life cycle | The stages through which goods and services move from the time they are introduced on the market until they are taken off the market |