THE ENTREPRENEURIAL PERSONALITY
Scholars, psychologists, analysts, and writers continue in efforts to define that elusive something called the “entrepreneurial” personality but while the results usually include some of the same words (creative, innovative, committed, talented, knowledgeable, self-confident, lucky, persistent, and others), actual entrepreneurs (like actual artists, scientists, discoverers, and leaders in every walk of life) come in a bewildering variety.
They may be highly trained or untrained, very knowledgeable or not. What seems certain is that the qualities entrepreneurs exhibit are not likely to be mass-producible or the consequence of a well-crafted curriculum.
That such people are in many ways outstanding and in others quite ordinary is also clear from a study of history. Entrepreneurship, therefore, might simply be called a kind of excellence that appears sharply in organizational life be it business or some other activity. -Source: inc.com
Definition: An employee’s deliberate or habitual absence from work
Definition: A person whose work it is to inspect, keep or adjust accounts
Definition: A business’s bookkeeping system that tracks the money coming in vs. the money going out
Definition: A company’s outstanding debts, or liabilities, to vendors for purchases of goods and services made on credit
Definition: The money due from all customers for merchandise or services delivered on credit. The total figure would be shown on the balance sheet as an asset
Definition: Accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged. The term “accrual” refers to any individual entry recording revenue or expense in the absence of a cash transaction
Definition: The purchase of one corporation by another, through either the purchase of its shares or the purchase of its assets
Definition: A group of individuals who’ve been selected to help advise a business owner regarding any number of business issues, including marketing, sales, financing, expansion and so on; a body that advises the board of directors and management of a corporation but does not have authority to vote on corporate matters
Definition: A way for a company to sell its products by signing up individuals or companies (“affiliates”) who market the company’s products for a commission
Definition: Joining forces with another company or individual to combine talents or strengths in order to attract more business
Alternative Minimum Tax (AMT)
Definition: A separate tax system designed to keep high-earning corporations and individuals from reducing their taxes to a level that the federal government considers too low
Americans With Disabilities Act (ADA)
Definition: A federal law enacted in 1990 that makes it illegal for employers with 15 or more employees to refuse to hire qualified people with disabilities if making “reasonable accommodations” would enable the person to carry out the duties of the job
Definition: An individual who invests his or her own money in an entrepreneurial company
Definition: A formal dispute resolution process that’s legally binding on the parties
Definition: The value of any tangible property and property rights owned by a company less any reserves set aside for depreciation. Assets don’t reflect any appreciation in value unless they’re sold for the greater value.
Definition: A person who’s been formally trained in the law, especially one whose profession is advising others in matters of law or representing them in lawsuits
Definition: A contract for an automobile in which one party agrees to pay for another party’s financial loss resulting from a specified event (for example, a collision, theft or storm damage)
Definition: A financial statement that lists the assets, liabilities, and equity of a company at a specific point in time and is used to calculate the net worth of a business. A basic tenet of double-entry book-keeping is that total assets (what business owns) must equal liabilities plus equity (how the assets are financed). In other words, the balance sheet must balance. Subtracting liabilities from assets shows the net worth of the business A basic tenet of double-entry bookkeeping is those total assets (what business owns) must equal liabilities plus equity (how the assets are financed). In other words, the balance sheet must balance.
Definition: A loan that requires a single, usually final, a payment that is much greater than the payment preceding it
Definition: A loan that business owners get from a bank
Definition: The rapport you establish with the bank with whom you conduct business transactions, which could help smooth the way when it comes to loan applications or special requests
Definition: A legal state of insolvency. A company deemed to be in this condition may choose protection under the law to allow a chance to reorganize or liquidate in an orderly fashion.
Definition: A rectangular-shaped ad that typically appears at the top of website pages
Definition: A standard or point of reference in measuring or judging the current value or success of your company in order to determine your future business plans
Definition: A product or service’s customer-oriented strengths; statements of a valuable product or service feature, with an emphasis on what the customer gets from the products
Definition: To invoice customers for payment
Definition: A guarantee of performance required, either by law or consumer demand, for many businesses, most typically general contractors, temporary personnel agencies, janitorial companies and businesses with government contracts
Definition: A monetary payment made to an employee over and above their standard salary or compensation package
Definition: To finance your company’s startup and growth with the assistance of or input from others
Definition: A smaller, remotely located office that is separate from a company’s corporate headquarters
Definition: The marketing practice of creating a name, symbol or design that identifies and differentiates a product from other products
Definition: A technique for analyzing how revenue, expenses, and profit vary with changes in sales volume
Definition: Establishing a planned level of expenditures, usually at a fairly detailed level. A company may plan and maintain a budget on either an accrual or a cash basis.
Definition: A professional who assists in the buying and selling of businesses
Definition: A small card identifying a person in connection with his or her business, given to a client, potential customer, etc.
Definition: Periods during which a business, industry or the entire economy expands and contracts
Definition: An organization designed to accelerate the growth and success of entrepreneurial companies through an array of business support resources and services that could include physical space, capital, coaching, common services, and networking connections
Business Interruption Insurance
Definition: Insurance coverage that protects a business in the event of natural disaster, fire or other extenuating circumstances that affects the ability of your company to conduct business
Definition: A legal document that grants you the right to operate a business in your city. Depending on your business, there are other licenses that may also be required.
Definition: The name by which people know your business. Different from your dba–which is the legal name you register for your business, this is the name you’d use to advertise and sell your products and services.
Definition: Legal definitions vary; in its simplest terms, a business opportunity is a packaged business investment that allows the buyer to begin a business. The Federal Trade Commission and 25 states regulate the concept.
Definition: A legal document that offers proof of compliance with certain city or state laws regulating structural appearances and safety as well as the sale of products
Definition: A written document describing the nature of the business, the sales and marketing strategy, and the financial background, and containing a projected profit and loss statement
Buying a Business
Definition: An alternative to starting a business from scratch or buying a business opportunity that involves purchasing an existing business for sale
Definition: An employee benefit arrangement allowed by IRS Code Section 125, under which employees are allowed to pay for certain employee benefits on a pre-tax rather than an after-tax basis.
Definition: Equipment that you use to manufacture a product, provide a service or use to sell, store and deliver merchandise. This equipment has an extended life so that it is properly regarded as a fixed asset.
Cash Float Accounts
Definition: A bank account specifically set up by a business owner to float money through from Business A to enhance the perceived value of Business B
Definition: The difference between the available cash at the beginning of an accounting period and that at the end of the period. Cash comes in from sales, loan proceeds, investments and the sale of assets and goes out to pay for operating and direct expenses, principal debt service, and the purchase of an asset
Cash Flow Statement
Definition: A financial statement that reflects the inflow of revenue vs. the outflow of expenses resulting from operating, investing and financing activities during a specific time period
Definition: An accounting system that doesn’t record accruals but instead recognizes income (or revenue) only when payment is received and expenses only when payment is made. There’s no match of revenue against expenses in a fixed accounting period, so comparisons of previous periods aren’t possible.
Definition: An SBA loan program that provides long-term, fixed-rate loans of up to $1 million for financing fixed assets, such as land and buildings
Definition: Advertisements by retailers that include the specific mention of manufacturers, who—in turn—repay the retailers for all or part of the cost of the advertisement
Definition: The asset(s) used as security in order to obtain a loan
Definition: A person who represents a company, industry or cause in the media
Definition: In financial terms, the salary and wages you pay to your employees for the work they do. Other, non-financial forms of compensation can also be offered to attract and retain staff.
Definition: Rivalry in business, as for customers or markets
Definition: Identifying your competitors and evaluating their strategies to determine their strengths and weaknesses relative to those of your own product or service
Definition: The process of gathering actionable information on your business’s competitive environment
Definition: Interest computed on the sum of the principle and the accrued interest
Definition: A person engaged to provide professional advice or services for a fee, but not as an employee of the business that engages him or her
Definition: A legal document between parties that clearly spells out just what is expected and required of each party
Definition: Exclusive legal rights that protect works of authorship, composition or artistry. A copyright protects the publication, production or sale of the rights to a literary, dramatic, musical or artistic work or computer program or to the use of a commercial print or label.
Definition: A blend of the values, beliefs, taboos, symbols, rituals, and myths all companies develop over time
Definition: A form of business operation that declares the business as a separate, legal entity guided by a group of officers known as the board of directors
Definition: A process by which you weigh expected costs against expected benefits to determine the best (or most profitable) course of action
Definition: Also known as cost per action, pay per acquisition (PPA) and cost per conversion (CPC), is an online advertising pricing model where the advertiser pays for a specified acquisition – for example a sale, click, or form submit (e.g., contact request, newsletter sign up, registration, etc.)
Cost per mille (CPM)
Also called cost per thousand (CPT) (in Latin, French and Italian, Mille means one thousand), is a commonly used measurement in advertising. It is the cost an advertiser pays for one thousand views or clicks of an advertisement.
Definition: A bank-issued card that allows people to purchase goods or services from a merchant on credit
Definition: Guidelines that spell out how to decide which customers are sold on open account, the exact payment terms, the limits set on outstanding balances and how to deal with delinquent accounts
Definition: Offering your customers the option of paying for the products and services they purchase from you at a later date instead of upfront
Definition: Steps you can take to minimize the risk that your business may be the victim of either an internal or external crime
Definition: Teaching your employees the skills and responsibilities of another position at your company to increase their effectiveness
Customer Acquisition Cost
Definition: The cost associated with convincing a customer to buy a product/service.
Basically, the CAC can be calculated by simply dividing all the costs spent on acquiring more customers (marketing expenses) by the number of customers acquired in the period the money was spent. For example, if a company spent $100 on marketing in a year and acquired 100 customers in the same year, their CAC is $1.00
Definition: The ways in which your company communicates and deals with existing customers
Definition: The degree of assistance and courtesy granted those who patronize a business
Definition: A method of financing in which a company receives a loan and gives its promise to repay the loan
Definition: A measure of the extent to which a firm’s capital is provided by owners or lenders, calculated by dividing debt by equity. Also, a measure of a company’s ability to repay its obligations. If ratios are increasing–more debt in relation to equity–the company is being financed by creditors rather than by internal positive cash flow which may be a dangerous trend.
Definition: Expenditures for business items that have no future life (such as rent, utilities or wages) and are incurred in conducting normal business activities which a business owner may deduct from gross earned income for federal tax purposes
Definition: The assignment to others of the authority for particular functions, tasks, and decisions
Definition: A statistical view of a population, generally including age, gender, income, schooling, occupation and so on
Definition: An expense item set up to express the diminishing life expectancy and value of any equipment (including vehicles). Depreciation is set up over a fixed period of time based on current tax regulations. Items fully depreciated are no longer carried as assets on the company books.
Definition: A marketing effort that uses a mail service to deliver a promotional printed piece to your target audience
Direct Public Offering (DPO)
Definition: A situation in which a company sells its shares directly to the public without the help of underwriters
Direct Response TV Advertising
Definition: A marketing effort that encourages the target audience to respond directly to the advertiser: through the telephone, a business reply card, a coupon and so on
Definition: A document that outlines your company policies in regards to discrimination in hiring and management practices
Definition: The manner in which goods move from the manufacturer to the outlet where the consumer purchases them; in some marketplaces, it’s a very complex channel, including distributors, wholesalers, jobbers, and brokers.
Definition: Individuals or businesses that purchase the right to sell ABC Corp.’s products but not the right to use ABC’s trade name
Definition: A risk-reduction strategy that involves adding product, services, location, customers and markets to your company’s portfolio
Doing Business As (DBA)
Definition: The operating name of a company, as opposed to the legal name of the company. Some states require DBA or fictitious business name filings to be made for the protection of consumers conducting business with the entity.
Definition: To invest, as in shares of stock, fixed amounts of money at regular intervals so as to buy more at lower prices and less at higher prices
Definition: An arrangement between a business and the manufacturer or distributor of a product the business wishes to sell in which the manufacturer or distributor–and not the business–ships the product to the business’s customers
Definition: A reasonable investigation of a proposed investment deal and of the principals offering it before the transaction is finalized to check out an investment’s worthiness; generally performed by the investor’s attorney and accountant.
Definition: Business done on and through the web
Definition: Effective Cost Per Mille is the effective cost per 1,000 impressions. By converting CPC and CPA rates back to an eCPM rate, campaigns of different cost models can be compared with each other to understand their relative performance.
Definition: Marketing via e-mail, usually through the use of sales letters or customer newsletters
Economic Development Agency
Definition: An agency whose goal is to help develop and support economic growth within a specified city, region or state by providing necessary resources and assistance
Definition: A document that includes information that employees may need to refer to frequently in order to meet the terms and conditions of their employment
Employee Stock Ownership Plans (ESOPs)
Definition: A trust set up by a company to allot some of its stock to its employees’ overtime. Used as an employee incentive, the plan often provides tax benefits to the company.
Definition: A 9-digit number obtained by a business with paid employees from the IRS. If you’re a sole proprietorship, your EIN is your social security number.
Definition: An agreement entered into between an employer and an employee at the time the employee is hired that outlines the exact nature of their business relationship, specifically what compensation the employee will receive in exchange for specific work performed
Definition: One who starts or assumes control of a business or other independent enterprise, often employing innovation and more than an ordinary degree of risk.
Equal Employment Opportunity Commission (EEOC)
Definition: The federal government agency mandated to monitor compliance with and enforce Title VII of the Civil Rights of 1964 and other federal civil rights laws
Definition: Obtaining the use of machinery, vehicles or other equipment on a rental basis. This avoids the need to invest capital in equipment. Ownership rests in the hands of the financial institution or leasing company, while the business has the actual use of it.
Definition: A method of financing in which a company issues shares of its stock and receives money in return. Depending on how you raise equity capital, you may relinquish anywhere from 25 to 75 percent of the business.
Definition: The act of using a personnel firm to locate potential candidates to fill open senior-level management or other critical positions in your company
Definition: Shared offices with services provided by a management firm
Definition: A nontechnical summary statement at the beginning of a business plan that’s designed to encapsulate your reason for writing the plan
Definition: The formal conversation that takes place between an employee and an HR or other managers to determine the reason(s) the employee is leaving
Definition: The planned exit of an owner from their business
Definition: A report that tracks expenses incurred during the course of performing necessary job functions. Examples include charges for gas, meals, parking or lodging.
Definition: An independent bank established by Congress that finances or insures foreign purchases of U.S. goods for customers unable or unwilling to accept credit risk.
Definition: The selling of goods and services produced in one country in another country
Definition: A financing method in which a business owner sells accounts receivable at a discount to a third-party funding source to raise capital
Fair Labor Standards Act
Definition: A federal law enforcing minimum standards that employers must abide by when hiring employees
Definition: A business actively owned and/or managed by more than one member of the same family
Fictitious Name Certificate
Definition: A legal document showing the operating name of a company, as opposed to the legal name of the company. In the case of a corporation, a fictitious business name is any name other than the corporate name stated in its articles of incorporation.
Definition: Estimates of the future financial performance of a business
Definition: A written report of the financial condition of a firm. Financial statements include the balance sheet, income statement, statement of changes in net worth and statement of cash flow.
First In, First Out (FIFO)
Definition: An accounting system used to value inventory for tax purposes. Under FIFO, inventory is valued at its most recent cost.
Flexible Work Arrangements
Definition: Arrangements that allow employees to have a more variable schedule as opposed to complying with the standard 8-hour workday
Definition: A controlled group interview of a target audience demographic, often led by a facilitator. A set series of questions or topics are covered, and the results are used to guide marketing efforts.
Definition: A business that has the potential to be sold as a franchise opportunity, generally have the following characteristics: It is established, offers a unique concept, is teachable and can provide an adequate return to potential franchisees.
Definition: A continuing relationship in which a franchiser provides a licensed privilege to the franchisee to do business and offers assistance in organizing, training, merchandising, marketing and managing in return for a monetary consideration. Franchising is a form of business by which the owner (franchiser) of a product, service or method obtains distribution through affiliated dealers (franchisees).
Definition: Monies, usually in the form a loan, that a business owner gets from either family members or friends in order to help finance their startup or growing business
Definition: The process of receiving, packaging and shipping orders for goods
Definition: Establishing short- or long-term objectives, usually incorporating deadlines and quantifiable measures
Definition: Agreements that outline business transactions between companies and government entities
Definition: An award of financial assistance in the form of money by the federal government to an eligible grantee with no expectation that the funds will be paid back. The term does not include technical assistance which provides services instead of money, or other assistance in the form of revenue sharing, loans, loan guarantees, interest subsidies, insurance, or direct appropriations
Definition: A formal proposal submitted to a government or civilian entity that outlines a proposed project and shows budgetary requirements and requests monetary assistance in the form of a grant
Definition: A pledge, usually in writing, given by a company to any customers that something is of specified quality, content, benefit or that it will provide satisfaction or will perform or produce in a specified manner. A guarantee also outlines what will happen should the buyer not be satisfied with his purchase.
Definition: An unconventional way of performing marketing activities on a very low budget
Definition: A written policy specifically stating that harassment will not be tolerated at work
Definition: A policy that will pay specified sums for medical expenses or treatments. Health policies can offer many options and vary in their approaches to coverage.
Definition: The practice of finding, evaluating, and establishing a working relationship with future employees, interns, contractors or consultants
Home Based Business
Definition: A business whose primary office is in the owner’s home. The business can be any size or any type as long as the office itself is located in a home.
Home Equity Loans
Definition: A loan that allows homeowners to borrow against the equity in their homes
Home Office Tax Deductions
Definition: Income tax deductions you’re allowed to take if your home office passes the “exclusive use” text needed to qualify for the deduction
Definition: The department or support systems responsible for personnel sourcing and hiring, applicant tracking, skills development and tracking, benefits administration and compliance with associated government regulations
Definition: The perception people have of your business when they hear your company name. A business’s image is composed of an infinite variety of facts, events, personal histories, advertising and goals that work together to make an impression on the public.
Definition: The process of bringing goods from one country for the purpose of reselling them in another country
Definition: When an ad is fetched from its source and is countable. Whether the ad is clicked is not taken into account. Each time an ad is fetched, it is counted as one impression.
Definition: A financial document generated monthly and/or annually that reports the earnings of a company by stating all relevant revenues (or gross income) and expenses in order to calculate net income. Also referred to as a profit and loss statement.
Definition: To legally form a corporation
Definition: A person hired to do work for another but who is not an employee or agent of that person. Control is subjected to the end result and not as to how the work is performed as opposed to an employee who receives direction on what, when and, to some degree, how to do a job.
Individual Retirement Account (IRA)
Definition: An interest-earning retirement savings account in which the allowable contributions and earnings aren’t taxed until the funds are withdrawn, after age 59 1/2.
Definition: A program-length TV commercial (also done sometimes on the radio) that’s very similar in appearance to a news program, talk show or another non-advertising format that provides consumers with in-depth information on a product or service
Definition: A term that encompasses all forms of technology used to create, store, exchange and utilize information in its various forms including business data, conversations, still images, motion pictures, and multimedia presentations
Initial Public Offering (IPO)
Definition: The first sale of securities (almost always as stock) in a corporation under the regulations governing a public company
Definition: Protection against loss for which you pay a certain sum periodically in exchange for a guarantee that you’ll be compensated under stipulated conditions for any specified loss by fire, accident, death, etc
Definition: The assets you cannot touch or see but that have value. Intangible assets include franchise rights, goodwill, non-compete agreements, and patents, among others.
Definition: The ownership of ideas. Unlike tangible assets to your business such as computers or your office, intellectual property is a collection of ideas and concepts.
Definition: A person, usually a student, participating in a program of temporary, supervised work in a particular field in order to gain practical experience
Definition: An object, process or technique that displays an element of novelty. In certain circumstances, legal protection may be granted to an invention by way of a patent.
Definition: An itemized list or catalog of the stock of a business
Definition: An itemized list of goods shipped or services rendered, stating quantities, prices, fees, shipping charges, etc. Also known as a “bill.”
Definition: An employment option that lets two people share the responsibilities of one full-time position
Definition: A pension plan that lets business owners contribute a certain portion of their profits or a predetermined annual contribution to a tax-sheltered account, where the funds grow until retirement
Key Person Insurance
Definition: Life insurance on a key employee, partner or proprietor on whom the continued successful operation of a business depends. The business is the beneficiary under the policy.
Definition: A small, enclosed stand from which merchandise is sold, often placed in the common area of a shopping center or public concourse
Definition: Laws that define the rights of employees in the United States and protect them from employer retaliation for exercising those legal rights or reporting violations to the proper authorities.
Last In, First Out (LIFO)
Definition: An accounting method for inventory and cost of sales in which the last items produced or purchased are assumed to be sold first; allows the business owner to value inventory at the less expensive cost of the older inventory; typically used during times of high inflation
Definition: A civil action brought in a court of law in which a plaintiff seeks a legal remedy, such as damages
Definition: Workers who are officially employed by a professional employer organization, which is responsible for overseeing all HR-related functions, but who actually perform all work for your company
Definition: An agreement between a landlord and a tenant that gives the tenant the right to use and occupy rental property for a period of time
Definition: Anything for which a company is legally bound or obligated, as to make good any loss or damage that occurs in a transaction
Definition: Insurance coverage that protects against claims against the insurance holder of property damage, personal injury, negligence and so on
Definition: A business arrangement in which one company gives another company permission to manufacture its product for a specified payment
Definition: An agreement that guarantees the payment of a stated amount of monetary benefits upon the death of the insured
Limited Liability Company
Definition: A form of business organization with the liability-shield advantages of a corporation and the flexibility and tax pass-through advantages of a partnership
Limited Liability Partnership
Definition: A business organization that allows limited partners to enjoy limited personal liability while general partners have unlimited personal liability
Definition: The practice of exchanging links with other websites. You place another site’s link on your site, usually on a links page, and in return, the other site places a link on their site back to you.
Definition: Money borrowed that is usually repaid with interest
Definition: The physical space where your business exists
Definition: A recognizable graphic design element, often including a name, symbol or trademark, representing an organization or product
Definition: A special SBA 7(a) loan promising quick processing for amounts less than $150,000
Definition: Print ads that run in local or national magazines
Definition: A collection of names and addresses used by a company to send material to multiple recipients. On the internet, mailing lists include each person’s e-mail address rather than a postal address.
Definition: An independent sales agent who works on commission
Definition: The process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business’s target market, the industry as a whole, and the particular competitors you face
Definition: The study of the spending characteristics and purchasing power of the consumer who is within your business’s geographic area of operation; a research method for defining the market parameters of a business.
Definition: To test multiple marketing scenarios and select the most promising for expansion.
Definition: A specific, defined series of activities used in marketing a new or changed product or service, or in using new marketing channels and methods
Definition: The printed pieces, such as brochures, letterhead, and business cards, you’ll use to market your business
Definition: The written document that describes your advertising and marketing efforts for the coming year; it includes a statement of the marketing situation, a discussion of target markets and company positioning and a description of the marketing mix you intend to use to reach your marketing goals
Definition: The process of establishing the exact media vehicles to be used for advertising
Definition: A form of alternative dispute resolution in which the involved parties bring their dispute to a neutral third party, who helps them agree on a settlement; mediation is generally nonbinding unless the parties agree to a resulting settlement
Definition: The tax you withhold from your employees’ paychecks to cover the cost of Medicare expenses
Definition: Educational and/or professional development support provided by experienced colleagues
Definition: The relationship between a company and a bank or credit card company that allows the company to accept credit card payments from its customers
Definition: The combination of one or more corporations, LLCs, or other business entities into a single business entity; the joining of two or more companies to achieve greater efficiencies of scale and productivity
Definition: A SBA loan program that helps entrepreneurs get very small loans, from less than $100 to $25,000
Minimum WageDefinition: A wage below which employers may not legally pay employees for specific kinds of employment
Definition: A sentence describing a company’s function, markets and competitive advantages; a short written statement of your business goals and philosophies
Definition: Using both tangible and non-tangible rewards to keep employees enthusiastic, loyal and interested in continual improvement
Naming a Business
Definition: The act of selecting a word or words by which your company will be known
Definition: The act of discussing an issue between two or more parties with competing interests with the aim of coming to an agreement
Definition: The amount of equity a company has, which is the difference between its total assets and total liabilities.
Definition: A business model in which a distributor network is needed to build the business. Usually, such businesses are also multilevel marketing in nature in that payouts occur at more than one level.
Definition: Developing and using contacts made in business for purposes beyond the reason for the initial contact. For example, a sales representative may ask a customer for the names of others who may be interested in his product.
Definition: Print ads that run in local or national, daily or weekly news publications
Definition: A portion of a market that you’ve identified as having some special characteristic and that’s worth marketing to
Definition: Contracts between you and your employees in which your employees promise not to take what they learn while working for you and use it against you while working for a competitor. A typical non-compete agreement says the employee agrees not to work for rivals, solicit business from current clients, or otherwise compete with you for some period of time, such as a year, after leaving your company.
Definition: A business organization that serves some public purpose and therefore enjoys special treatment under the law. Nonprofit corporations, contrary to their name, can make a profit but can’t be designed primarily for profit-making.
Occupational Safety and Health Administration
Definition: A federal agency that oversees the federal laws requiring employers to provide employees with a workplace free from hazardous conditions
Definition: Internet advertising whose goal it is to drive customers to your website or location(s), or to make a call regarding your products or services
Definition: Virtual auctions on the internet. The seller sells the product or service to the person who bids the highest price. For sellers, online auctions open up new sales channels for new products and offer buyers favorable purchasing conditions.
Definition: The selling and general and administrative expenses incurred by a business
Definition: Any advertising is done outdoors that publicizes your business’s products and services. Types of outdoor advertising include billboards, bus benches, interiors and exteriors of buses, taxis and business vehicles, and signage posted on the exterior of your own brick-and-mortar location.
Definition: The practice of having certain job functions done outside a company instead of having an in-house department or employee handle them; functions can be outsourced to either a company or an individual
Definition: The indirect costs or fixed expenses of operating a business (that is, the costs not directly related to the manufacture of a product or delivery of a service) that range from rent to administrative costs to marketing costs
Definition: The laws that regulate how to compensate employees for working in excess of a standard workweek
Definition: The wages a business owner pays himself for work done for the business
Definition: The wrapping material around a consumer item that serves to contain, identify, describe, protect, display, promote and otherwise make the product marketable and keep it clean
Definition: A legal form of business operation between two or more individuals who share management and profits. The federal government recognizes several types of partnerships. The two most common are general and limited partnerships.
Definition: A form of protection that provides a person or legal entity with exclusive rights for making, using or selling a concept or invention and excludes others from doing the same for the duration of the patent
Definition: The administration of a company’s outstanding debts, or liabilities, to vendors for purchases of goods and services made on credit
Definition: The administration of the financial record of employees’ salaries, wages, bonuses, net pay, and deductions
Definition: Also known as cost per click (CPC), is an internet advertising model used to drive traffic to websites, in which an advertiser pays a publisher (typically a search engine, website owner, or a network of websites) when the ad is clicked.
Definition: Performance Marketing is a comprehensive term that refers to online marketing and advertising programs in which advertisers (a.k.a., “retailers” or “merchants”) pay marketing companies (a.k.a, “affiliates” or “publishers”) when a specific action is completed; such as a sale, lead or click.-
Definition: An analysis of an employee’s work habits undertaken at a fixed point in time to determine the degree to which stated objectives and expectations have been reached
Definition: A legal document giving official permission to do something
Definition: A podcast is a pre-recorded audio program that’s posted to a website and is made available for download so people can listen to them on personal computers or mobile devices.
Point of Sale (POS) System
Definition: A computerized network operated by the main computer and linked to several checkout terminals
Definition: How you differentiate your product or service from that of your competitors and then determine which market niche to fill
Definition: A comprehensive package of information outlining a company’s products and services most frequently sent to members of the press
Pricing a Product
Definition: To establish a selling price for a product
Pricing a Service
Definition: To establish a selling price for a service
Primary Market Research
Definition: Information that comes directly from the source–that is, potential customers. You can compile this information yourself or hire someone else to gather it for you via surveys, focus groups, and other methods.
Private Label Sales
Definition: Licensing your product to another company to sell under its own name, rather than under yours
Definition: The overall process of strategy, organization, concept generation, product and marketing plan creation and evaluation, and commercialization of a new product
Professional Employer Organization (PEO)
Definition: A company that technically “employs” the workers of several other companies and oversees all HR-related functions
Professional Service Providers
Definition: Individuals who provide your company with specialized service, including but not restricted to lawyers, accountants and management consultants
Definition: Insurance that protects the physical property and equipment of a business against loss from theft, fire or other perils; all-risk coverage covers against all risks; named-peril coverage covers only against specific perils named in the policy.
Definition: The search for potential customers or buyers
Definition: A replica of a product as it will be manufactured, which may include such details as color, graphics, packaging, and instructions
Definition: Using the news or business press to carry positive stories about your company or your products; cultivating a good relationship with local press representatives
Definition: A person or company who has (“publishes”) a website (or some other form of online property) on which they wish to display online advertising
Definition: The selling of another company’s products through a distribution system of racks in a variety of stores that are serviced by the rack jobber
Definition: Commercials of various lengths that run on radio stations
Definition: The movement of a business from one region or location to another
Definition: A space you lease for the selling of goods to consumers
Definition: An amount of money that acts as a fee pre-payment; the remainder is refunded to the client
Definition: An arrangement to provide people with an income during retirement when they’re no longer earning a steady income from employment
Return on Investment (ROI)
Definition: A profitability measure that evaluates the performance of a business by dividing net profit by net worth
Definition: Decisions to accept exposure or reduce vulnerabilities by either mitigating the risks or applying cost-effective controls
Definition: A personal retirement savings vehicle created by the Tax Payer Relief Act of 1997. A Roth IRA allows certain investors to make non-deductible contributions of up to $4,000 annually and, provided certain requirements are met, offers tax-free and penalty-free withdrawals for important financial needs in addition to retirement.
Definition: The division of a business that’s responsible for selling products or services
Definition: A form of direct mail in which an advertiser sends a letter to a potential customer
Definition: The information you have on your customers, including but not limited to their contact information, how often they purchase from you, what they purchase and how they pay their bills
Definition: A tax collected by all retailers and certain service providers when they make taxable retail sales. Sales taxes could include state, county, and local taxes.
Savings Incentive Match Plan for Employees (SIMPLE IRA)
Definition: An individual retirement account for owners of businesses with 100 employees or less that’s similar to a 401(k)
Definition: Term loans from a bank or commercial lending institution that the SBA guarantees as much as 80 percent of the loan principal for
Definition: A resource partner of the U.S. SBA that offer free counseling and resources to people interested in starting or growing a small business
Search Engine Optimization
Definition: The process of increasing the number of visitors to a website by ranking high in the search results of a search engine
Secondary Market Research
Definition: Market research that’s already compiled and organized for you. Examples of secondary information include reports and studies by government agencies, trade associations or other businesses within your industry.
Self-Employment Tax (Schedule SE)
Definition: A social security and Medicare tax primarily for individuals who work for themselves. It’s similar to the social security and Medicare taxes withheld from the pay of most wage earners.
Selling Your Business
Definition: The process of putting your business up for sale by an individual or other company
Definition: Money in addition to wages and any other money that employers owe employees when their employment ends, such as through a layoff or firing. Severance pay is a form of what’s generally called “separation,” “termination” or “final pay.”
Definition: The business of sending or transporting goods
Definition: A loan scheduled to be repaid in less than a year
Signage and Sign Permits
Definition: Any publicly displayed information that’s presented in the form of words, symbols and/or pictures and is designed to advertise your business. Sign permits provide legal permission to post such information.
Simplified Employee Pension Plan (SEP)
Definition: A retirement plan that allows you to contribute and deduct up to 20 percent of self-employment income (25 percent of salary if you’re an employee of your own corporation)
Definition: A catchphrase or small group of words that are combined in a special way to identify a product or company
Small Business Administration (SBA)
Definition: A federal government agency created to foster and protect the interests of small business
Small Business Development Centers
Definition: University-based centers sponsored by the SBA for the delivery of joint government, academic and private sector services for the benefit of small business.
Definition: Acting with concern and sensitivity, aware of the impact of your actions on others, particularly the disadvantaged
Social Security Tax (FICA)
Definition: A tax paid by workers and employers on wages earned that supports the benefit programs under the Social Security System
Definition: A business that legally has no separate existence from its owner. Income and losses are taxed on the individual’s personal income tax return.
Special Coverage Insurance
Definition: An insurance policy expressly designed to offer a guarantee of protection in the event of specific circumstances
Sub-chapter S Corporation
Definition: A special form of corporation that allows the protection of limited liability but direct flow-through of profits and losses
Definition: The process of planning for the day a business owner decides to step down from their leadership role
Definition: Affiliations with the companies that supply your business with goods and services
Definition: A specific group of consumers at which a company aims its products and services
Tax Deductions (aka Standard Business Tax Ded)
Definition: The costs of doing business that is tax-deductible to the full extent of the law
Definition: Sums imposed by a government authority upon persons or property to pay for government services
Taxpayer ID Number
Definition: A 9-digit number obtained from the IRS by a business with paid employees. If you’re a sole proprietorship, your taxpayer ID number is your social security number.
Definition: The practice of working from home for business and communicating through the use of a personal computer equipped with a modem and communications software
Definition: Use of the telephone to market goods or services directly to prospective customers
Definition: Ten- to 60-second commercials on network TV stations
Definition: Employees who are not permanently hired but hired just for limited periods of time
Definition: A loan for equipment, real estate and working capital that’s paid off like a mortgage for between one year and ten years
Terminating an Employee
Definition: A document that outlines the procedures involved when employees are fired, with or without cause
Definition: A small piece of code that can be inserted into a website to “track” so-called actions, acquisitions or conversions.
Definition: An organization that represents the interests of the member firms of an industry
Definition: An arrangement to buy goods or services on account, that is, without making an immediate cash payment
Definition: Information used by a business, which can be legally protected that is secret to the general public and is critical to the livelihood and success of a business
Definition: An exhibition for companies in a specific industry to showcase and demonstrate their new products and services. Generally, trade shows are not open to the public and can only be attended by company representatives and members of the press. Also, an exhibition of businesses offering franchises and/or business opportunity packages for sale.
Definition: Any symbol, word or combination thereof used to represent or identify a product. A service mark means the same thing but identifies a service.
Definition: Programs designed for training employees in specific skills
Definition: The condition that exists when a company doesn’t have enough cash to carry on its business and pay its creditors
Definition: A federal program whereby eligible unemployed persons receive cash benefits for a specified period of time. These benefits are paid out of funds derived from employer, employee and government contributions.
Uniform Franchise Offering Circular (UFOC)
Definition: A regulatory document describing a franchise opportunity that prospective franchisees have to receive before they pay any money, sign any papers or, in some cases, even meet with the franchiser
Unique Selling Proposition (USP)
Definition: The factor or consideration presented by a seller as the reason that one product or service is different from and better than that of the competition
Definition: Universal resource locator, or, more simply, a web page’s address
Definition: Vehicles owned by a company and used for business purposes
Definition: Funds flowing into a company, generally during the pre-IPO process, in the form of an investment rather than a loan. Controlled by an individual or small group known as venture capitalists, these investments require a high rate of return and are secured by a substantial ownership position in the business.
Definition: A seller’s assurance to a purchaser that the goods or services being purchased are or shall be as represented and, if not, will be replaced or repaired
Definition: Services focused on the promotion or maintenance of good health rather than the correction of poor health
Definition: An unpaid form of promotion in which satisfied customers tell other people how much they like a business, product or service
Workers’ Compensation Insurance
Definition: Insurance that covers medical and rehabilitation costs and lost wages for employees injured at work; required by law in all states
Yellow Pages Advertising
Definition: line or display ads in the Yellow Pages section of your local phone book(s)
Definition: The division of a city or county by legislative regulations into areas (zones), specifying the uses allowable for the property in these areas
- Agency Sparks
- Corporate Finance Institute
- DBS Bank Ltd
- Germany Startup Jobs
- National Center for Employee Ownership
- SulAmerica Health Insurance
- the balance
- Your IP Inside
The Savvy Entrepreneurs 2020 Encyclopedia
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