Read Start Your Own Business Online
Authors: Inc The Staff of Entrepreneur Media
Start Your Own Business (116 page)
Binding letter of intent:
a letter of intent would be upheld in a court of law as the actual leasing of space by the tenant from the landlord and by the landlord to the tenant regardless of whether an actual lease document was agreed to or signed
a letter of intent would be upheld in a court of law as the actual leasing of space by the tenant from the landlord and by the landlord to the tenant regardless of whether an actual lease document was agreed to or signed
Bluetooth:
a short-range (30 feet) wireless protocol for transferring voice and data among cell phones and computing devices over the 2.4 GHz radio band at up to 700Kbps
a short-range (30 feet) wireless protocol for transferring voice and data among cell phones and computing devices over the 2.4 GHz radio band at up to 700Kbps
Bonding:
a guarantee of performance required either by law or consumer demand for many businesses, typically general contractors, temporary personnel agencies, janitorial companies and businesses with government contracts
a guarantee of performance required either by law or consumer demand for many businesses, typically general contractors, temporary personnel agencies, janitorial companies and businesses with government contracts
Bonus:
a sum of money in addition to salary that’s part of total compensation
a sum of money in addition to salary that’s part of total compensation
Brand audit:
examining your brand from every angle to see how well it’s working
examining your brand from every angle to see how well it’s working
Brand equity:
the dollar value your brand generates over decades in the demand it drives and the customer loyalty it creates; brand equity for a very large, well-known company like Nike translates into billions of dollars
the dollar value your brand generates over decades in the demand it drives and the customer loyalty it creates; brand equity for a very large, well-known company like Nike translates into billions of dollars
Brand identity:
the visual aspects of your brand that include your signs, packaging and stationery; customer service also falls into this category
the visual aspects of your brand that include your signs, packaging and stationery; customer service also falls into this category
Branding:
your company’s reason for being; the synchronization of all aspects of your company that leads to consistency and creates value around your product or service
your company’s reason for being; the synchronization of all aspects of your company that leads to consistency and creates value around your product or service
Brandmark:
the illustration that distinguishes your company; in other words, your logo
the illustration that distinguishes your company; in other words, your logo
Brand position:
how your customers view your brand vis-à-vis the competition
how your customers view your brand vis-à-vis the competition
Brand promise:
how you tell customers about the most important benefit of your product or service, who in turn should be able to connect this benefit right back to your product
how you tell customers about the most important benefit of your product or service, who in turn should be able to connect this benefit right back to your product
Brand strategy:
a written plan for applying your brand strategically
a written plan for applying your brand strategically
Broadband modem:
any device that connects your computer to the same cable that brings content to your TV, or to the T1, ATM fiber relay or DSL of the telephone companies
any device that connects your computer to the same cable that brings content to your TV, or to the T1, ATM fiber relay or DSL of the telephone companies
Broker:
an insurance agent who represents many different insurance companies
an insurance agent who represents many different insurance companies
Browser:
software used for navigating the web
software used for navigating the web
Building standard work letter:
a list and/or detailed specifications of the construction items (both quantity and quality) that will be provided by the developer to be used in building out a tenant’s office space
a list and/or detailed specifications of the construction items (both quantity and quality) that will be provided by the developer to be used in building out a tenant’s office space
Business broker:
a person who helps buy and sell businesses, similar to a real estate broker
a person who helps buy and sell businesses, similar to a real estate broker
Business interruption insurance:
pays for the cost of repairing or rebuilding a business, as well as income lost, while the business is out of commission
pays for the cost of repairing or rebuilding a business, as well as income lost, while the business is out of commission
Business opportunity:
legal definitions vary; in its simplest terms, a business opportunity is a packaged business investment that allows the buyer to begin a business
legal definitions vary; in its simplest terms, a business opportunity is a packaged business investment that allows the buyer to begin a business
Cable modem:
modem that connects to your cable TV line to give you high-speed access to the internet
modem that connects to your cable TV line to give you high-speed access to the internet
Cash-flow statement:
the financial statement that reflects all inflows and outflows of cash resulting from operating, investing and financing activities during a specific time period
the financial statement that reflects all inflows and outflows of cash resulting from operating, investing and financing activities during a specific time period
Certified Development Companies (CDCs):
nonprofit intermediaries that work with the SBA and banks to make 504 Loans available to entrepreneurs
nonprofit intermediaries that work with the SBA and banks to make 504 Loans available to entrepreneurs
Chadder:
type of letter-opening machine that cuts one-eighth of an inch from the end of the envelope
type of letter-opening machine that cuts one-eighth of an inch from the end of the envelope
Chargeback:
when a customer purchases an item using a credit card and then returns it, this is called a chargeback
when a customer purchases an item using a credit card and then returns it, this is called a chargeback
Chart of accounts:
the list of accounts that are tracked within the general ledger
the list of accounts that are tracked within the general ledger
Chattel-mortgage contract:
type of credit contract used for equipment purchase in which the equipment becomes the property of the purchaser on delivery, but the seller holds a mortgage claim against it until the contract amount is fully paid
type of credit contract used for equipment purchase in which the equipment becomes the property of the purchaser on delivery, but the seller holds a mortgage claim against it until the contract amount is fully paid
Closed-end lease:
type of equipment lease in which no money is owed when the lease period ends; the lessee simply turns in the equipment and walks away
type of equipment lease in which no money is owed when the lease period ends; the lessee simply turns in the equipment and walks away
Cohort marketing:
marketing to people based on the groups or “cohorts” they were part of during their formative years
marketing to people based on the groups or “cohorts” they were part of during their formative years
Collateral:
anything of value that can be pledged against a loan, including stocks and bonds, equipment, home equity, inventory, and receivables; if you cannot repay the loan, the lender will look to your collateral as a backup source of repayment
anything of value that can be pledged against a loan, including stocks and bonds, equipment, home equity, inventory, and receivables; if you cannot repay the loan, the lender will look to your collateral as a backup source of repayment
Commissioned financial planner:
financial planner who receives commissions on products he or she sells
financial planner who receives commissions on products he or she sells
Common stock:
stock representing equity ownership in a company; it entitles the holder to elect corporate directors and collect dividends
stock representing equity ownership in a company; it entitles the holder to elect corporate directors and collect dividends
Competitive analysis:
section of a business plan that assesses the competition’s strengths and weaknesses
section of a business plan that assesses the competition’s strengths and weaknesses
Conditional sales contract:
type of credit contract used for equipment purchase in which the purchaser does not receive title to the equipment until it is paid for
type of credit contract used for equipment purchase in which the purchaser does not receive title to the equipment until it is paid for
Consolidated Omnibus Budget Reconciliation Act (COBRA):
law requiring employers to extend health insurance coverage to employees and dependents beyond the point at which such coverage traditionally ceases (such as the termination or death of the covered employee)
law requiring employers to extend health insurance coverage to employees and dependents beyond the point at which such coverage traditionally ceases (such as the termination or death of the covered employee)
Consumer:
an individual who purchases services or products from a business
an individual who purchases services or products from a business
Contiguous office space:
office suites adjacent to each other or having a common demising wall
office suites adjacent to each other or having a common demising wall
Cookie:
a piece of data given to your browser by a web server when you visit a web page; the browser stores the cookie in a file and sends a message back to the server each time you revisit that web page
a piece of data given to your browser by a web server when you visit a web page; the browser stores the cookie in a file and sends a message back to the server each time you revisit that web page
Corporation:
a legal entity that’s separate and distinct from its owners
a legal entity that’s separate and distinct from its owners
Cost accounting:
the process of allocating all direct and indirect expenses associated with the production and/or sale of a product
the process of allocating all direct and indirect expenses associated with the production and/or sale of a product
Cost of goods sold:
the cost that a business incurs to produce a product for sale to its customers
the cost that a business incurs to produce a product for sale to its customers
Count cycle:
the period at which you count your inventory; a four-week count cycle means you count inventory every four weeks
the period at which you count your inventory; a four-week count cycle means you count inventory every four weeks
CPA (certified public accountant):
an accountant who has passed a nationally standardized exam in accounting
an accountant who has passed a nationally standardized exam in accounting
CPM (cost per thousand):
figure that tells you how much it costs to reach 1,000 potential customers with a given form of advertising
figure that tells you how much it costs to reach 1,000 potential customers with a given form of advertising
CPU:
the central processing unit, or the brains of the computer, now commonly includes two separate processing engines bolstered by a lot of on-chip cache memory
the central processing unit, or the brains of the computer, now commonly includes two separate processing engines bolstered by a lot of on-chip cache memory
Credit:
the right-side entries in a double-entry accounting system
the right-side entries in a double-entry accounting system
Cross-training:
training employees to fill more than one position
training employees to fill more than one position
Cure provision:
part of the default section of a promissory note, the cure provision allows you a certain amount of time (usually 10 days) to remedy a default after you’ve been notified
part of the default section of a promissory note, the cure provision allows you a certain amount of time (usually 10 days) to remedy a default after you’ve been notified
Current maturities of long-term debt:
the portion of long-term debt that is due in one year or less
the portion of long-term debt that is due in one year or less
Debit:
the left-side entries in a double-entry accounting system
the left-side entries in a double-entry accounting system
Debit card:
a card that can be used to debit money directly from the customer’s checking account
a card that can be used to debit money directly from the customer’s checking account
Debt financing:
capital in the form of a loan, which must be paid back
capital in the form of a loan, which must be paid back
Deductions:
business and other expenses that reduce your income
business and other expenses that reduce your income
Delivery cycle:
the time it takes for inventory to be delivered; a ten-week delivery cycle means inventory takes ten weeks to arrive
the time it takes for inventory to be delivered; a ten-week delivery cycle means inventory takes ten weeks to arrive
Depreciation:
allocation of the cost resulting from the purchase of a fixed asset over the entire period of its use
allocation of the cost resulting from the purchase of a fixed asset over the entire period of its use
Design and development plan:
section of a business plan that describes the product’s design and charts its development within the context of production, marketing and the company itself
section of a business plan that describes the product’s design and charts its development within the context of production, marketing and the company itself
Direct mail:
any form of advertising material that’s mailed directly to potential customers, including catalogs, brochures, letters, fliers, postcards and newsletters
any form of advertising material that’s mailed directly to potential customers, including catalogs, brochures, letters, fliers, postcards and newsletters
Direct writer:
an insurance agent who represents one insurance company
an insurance agent who represents one insurance company
Disability insurance:
pays a fixed percentage of average earnings if the insured is unable to continue working due to disability
pays a fixed percentage of average earnings if the insured is unable to continue working due to disability
Discount rate:
the actual percentage the merchant is charged per credit card transaction by the credit card company or bank; the discount rate is based on sales volume, risk and other factors
the actual percentage the merchant is charged per credit card transaction by the credit card company or bank; the discount rate is based on sales volume, risk and other factors
Disguised dividend:
total compensation in the form of salary, bonus and perquisites that is judged to be excessive by the IRS
total compensation in the form of salary, bonus and perquisites that is judged to be excessive by the IRS
Distribution:
means of getting product to the end user; describes entire process of moving product from factory to end user
means of getting product to the end user; describes entire process of moving product from factory to end user
Dividend:
distribution of a portion of a company’s earnings, determined by the board of directors, to a class of its shareholders
distribution of a portion of a company’s earnings, determined by the board of directors, to a class of its shareholders
Dollar-control system:
tracking system where sales receipts are compared with delivery receipts to determine the cost and gross profit margin on inventory items
tracking system where sales receipts are compared with delivery receipts to determine the cost and gross profit margin on inventory items
Domain name:
the words or phrases a user types into their browser to go to a website, such as w w w.[YourWebsiteName].com
the words or phrases a user types into their browser to go to a website, such as w w w.[YourWebsiteName].com
Double-entry accounting:
a system of accounting in which the total of all left-side entries is equal to and offset by the total of all right-side entries
a system of accounting in which the total of all left-side entries is equal to and offset by the total of all right-side entries
Downline:
the group of sales representatives that a given sales rep has recruited to join a multilevel marketing system; the rep receives a percentage of their sales
the group of sales representatives that a given sales rep has recruited to join a multilevel marketing system; the rep receives a percentage of their sales
DSL (or xDSL):
DSL or xDSL refers to Digital Subscriber Line, which is a way of connecting to the internet at high speeds over your copper telephone line
DSL or xDSL refers to Digital Subscriber Line, which is a way of connecting to the internet at high speeds over your copper telephone line
Due diligence:
the process of investigating legal, financial and other aspects of any business deal (such as buying a business) before the deal is completed
the process of investigating legal, financial and other aspects of any business deal (such as buying a business) before the deal is completed
Easement:
the right of an individual or entity to use the land of another individual or entity, usually for a specific purpose
the right of an individual or entity to use the land of another individual or entity, usually for a specific purpose
E-commerce:
the process of conducting business on the internet and accepting credit cards or other forms of digital payments (using PayPal, for example)
the process of conducting business on the internet and accepting credit cards or other forms of digital payments (using PayPal, for example)
E-mail auto responder:
an automatic e-mail response generated by the web server in response to a customer’s e-mail inquiry
an automatic e-mail response generated by the web server in response to a customer’s e-mail inquiry
Employee leasing company:
company that administers personnel functions for clients and “leases” the client’s employees back to them; also known as a professional employer organization (PEO)
company that administers personnel functions for clients and “leases” the client’s employees back to them; also known as a professional employer organization (PEO)
Employee stock ownership plan:
a plan that gives employees shares of stock in a company
a plan that gives employees shares of stock in a company
Employment practices liability insurance:
an optional part of workers’ compensation coverage, this protects the corporation from being sued for acts of individual employees (such as in a sexual harassment case)
an optional part of workers’ compensation coverage, this protects the corporation from being sued for acts of individual employees (such as in a sexual harassment case)
Empowerment zones/renewal communities:
designated economically disadvantaged zones that offer state and/or federal tax breaks and other incentives to businesses that locate there
designated economically disadvantaged zones that offer state and/or federal tax breaks and other incentives to businesses that locate there
Engagement letter:
letter of agreement between a lawyer or an accountant and his/her client that spells out the terms
letter of agreement between a lawyer or an accountant and his/her client that spells out the terms
Equity financing:
capital received in exchange for part ownership of the company
capital received in exchange for part ownership of the company
Errors and omissions liability coverage:
protects professionals, such as consultants or accountants, from damages resulting from an error or omission in their work
protects professionals, such as consultants or accountants, from damages resulting from an error or omission in their work
Escalator(s):
term used to describe how a tenant’s payment for rent or service shall increase
term used to describe how a tenant’s payment for rent or service shall increase
Ethernet:
a packet-based wired transmission protocol primarily used in local area networking, Ethernet is the common name for the IEEE 802.3 industry specification that is often identified by its data transmission rate
a packet-based wired transmission protocol primarily used in local area networking, Ethernet is the common name for the IEEE 802.3 industry specification that is often identified by its data transmission rate
Executive search firm:
company that recruits executive, technical or professional job candidates for client companies; also called recruitment firm or headhunter
company that recruits executive, technical or professional job candidates for client companies; also called recruitment firm or headhunter
Executive summary:
the opening section of a business plan; describes the business, product or service in brief
the opening section of a business plan; describes the business, product or service in brief
Expense:
money spent for goods or services
money spent for goods or services
Factors:
companies that buy businesses’ accounts receivable
companies that buy businesses’ accounts receivable
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