ENTREPRENEURSHIP VOCABULARY

AUTOMATION The use of machines, control systems, and information technology to optimize productivity

BALANCE SHEET Financial statement which tells entrepreneur what the business is worth at a given time Summary of financial balances includes assets, liabilities, and equity

BREAK EVEN POINT Sale equal to cost of producing the product

BUSINESS CONCEPT Statement of an idea

BUSINESS PLAN Document that describes the business concept, operations, forecasts, and justification for financial backing

CASH FLOW STATEMENT Statement which shows the rate at which money is received and spent

COMPETITION Product that is similar or the same that is sold by another company

CUSTOMER PROFILE A description of a customer or a set of customers that include demographic, psychographic and geographic characteristics as well as buying patterns, credit worthiness and purchase history

ENTREPRENEUR Someone willing to assume risks for starting a business

FINANCIAL PLAN Forecast for determining acquisition of funding, profits, and sales projection

FIXED COSTS Expenses that vary little if any

FEASIBILITY ANALYSIS Study to determine if idea is practical

GROSS PROFIT Income made before expenses are paid or all revenue collected

INCOME STATEMENT (POFIT AND LOSS STATEMENT) An accounting record of monies received

INVENTORY CONTROL Management of costs through strict accounting of raw materials and products sold

JUST IN TIME INVENTORY A cost effective method of managing out going product to manage cash flow

LIABILITY Accountability and responsibility for business risks

MARKET ANALYSIS Study of current trends in consumer behavior

MARKET SURVEY Research measuring feelings and preferences of customers in a given market. (usually a list of questions)

MARKET NICHE Target group of customers who are most likely to buy a product

MARK-UP Amount business adds to the cost of producing the producing the product. Cost + Markup=Price

NET PROFIT Amount of monies that remains after expenses are paid

OBJECTIVE A desired result, something that one’s efforts or actions are intended to attain

OHSA Occupational Safety and Hazards Administration-federal agency that monitors safe workplaces

POLICY Guiding principle, rules, or strategy

PORTFOLIO Collection of works, strategies, research, business proposal

PRODUCT STANDARDS Process that must be followed every time to control uniform/consistant outcome

PRODUCT MIX Product, place, promotion, price, etc.

PROTOTYPE Sample product/ working model

QUALITY CONTROL Process oversight that manages consistent superior products

RETAIL PRICES Amount the consumer pays

SALES PROJECTION ( FORECAST) Forecast of future sales

TARGET CUSTOMER Group of consumers expected to purchase product

VARIABLE COSTS Expenses that change. Example electricity cost

VENDOR Supplier of goods or service to a business

COLLATERAL An asset that can be sold by a creditor to settle financial obligation

CORPORATION Type of business ownership that grants individuals or group a charter of legal rights and protection

DEMOGRAPHICS Market characteristics such as gender, location, income, ethnicity, etc.

FRANCHISE A licensed right to use name, recipes, trademarks, and other property of another company

MARKETING The conception, pricing, promotion and distribution of products and services to satisfy customer wants and needs