Wednesday 11th of April 2018
Entrepreneurship is the most enticing professional choice for enthusiastic, confident, self-motiv
...ated individuals. They do not want to follow other...
Entrepreneurship is the most enticing professional choice for enthusiastic, confident, self-motivated individuals. They do not want to follow others but carve their own paths to success. Many of them learn the tricks of the trade during their corporate stints, but others choose to start a business. They work hard and allow their ideas to bloom into sustainable ventures. Some individuals shirk the hard work and opt for smart work. They opt for existing New Zealand business opportunities to reach the top straightway.
These individuals may not have the expertise or experience, but they have a knack for running organisations. They know how to generate profits by using the processes and policies of a seasoned business owner. It reduces their burden and helps them to hit the ground running. While they may have the aptitude to grow, they may lack the knowledge of corporate slang. Here is an entrepreneur glossary that covers all important terms needed to operate successfully. It can help improve your knowledge of industry jargon and zoom ahead with confidence.
Accelerators are programs developed to support start-ups with funding, mentoring and resources. It helps to boost a newly launched business by offering support for a short period.
The accounting method where revenue and expenses are recorded when they are earned and incurred instead of waiting for the cash transaction is known as accrual cash accounting.
Amortisation is the cost incurred by an asset because of a decline in its value over the years.
Angel investors are wealthy business veterans who put their money into small and upcoming businesses to help them grow. They usually offer funds and mentoring in exchange for equity in a high-potential start-up.
A business reaches the break-even point when its expenses become equal to its income. Before reaching this point, they have to operate at a loss and above this point, they start making profits.
The process of determining the market value of an entity is known as business valuation. Budding entrepreneurs must identify this amount when buying businesses for sale in New Zealand to grab them for the right price.
Cash flow is the amount of cash coming in and going out of the business. Cash flow forecasting is predicting the entity's cash flow for a given period based on past financial records.
Content marketing involves developing and sharing different types of content online to increase brand awareness, customer loyalty and credibility. It is easy to find takers for a business for sale in New Zealand that uses content marketing.
Every profit-making business has an obligation to give back to the society. It is done by making a social, economic and environmental contribution without generating profits.
Cost of goods sold is the expense incurred by the business in developing or procuring a product for sale. It includes the cost of material, packaging, labour and transportation
Customer lifetime value is the total revenue the business expects to generate from a customer throughout their association with the brand.
It is a financial metric used to determine the debt of a business compared to its equity. It helps understand the financial health of the entity.
The eventual decline in value of a fixed asset over a period is known as depreciation. For example, the value of computers in the office keeps decreasing with time.
DEI is a workplace policy that ensures equal, unbiased and fair treatment of all employees irrespective of their colour, culture, gender, sexual orientation, religion, etc.
EBITDA stands for earnings before interest, taxes, depreciation and amortisation. It ascertains the entity’s ability to grow and is the first thing assessed when buying a New Zealand business for sale.
Economies of scale are accomplished when the business starts producing more goods, which decreases the cost of goods sold.
Equity is the capital received by shareholders after the assets of the company are liquidated and all its debts are paid off.
Equity financing is the selling of shares by the business to investors for raising capital and offering them an ownership stake.
Fixed costs are business expenses that remain unchanged even when sales or production volumes go up and down, such as commercial property rent and salaries and wages of employees.
GST is a value-added tax applied on the sale of goods and services consumed in New Zealand.
The gross profit margin is determined by dividing gross profit by net sales and multiplying it by 100. It helps evaluate the financial standing of a venture.
The process of ordering, tracking, storing, managing, and shipping goods is known as inventory management. It involves forecasting sales volumes to maintain optimum stock levels.
Key performance indicators are used to set goals and monitor the performance of employees. It helps to identify areas of improvement and increase employee focus.
The marketing mix includes the 4 Ps (product, price, place and promotion) to influence and satisfy the target audience.
Market capitalisation provides insight into the market value of the business’s outstanding shares. When buying a business for sale New Zealand, evaluating this becomes necessary.
The stage where the customer purchases a product and completes the transaction is known as Point of Sale, and POS systems are used to process the financial transaction.
The price to earnings ratio is the ratio of the business’s share price to its earnings per share. It helps to determine if the market value of the stock is high or low.
SMART (stands for specific, measurable, attainable, realistic and timely) goals are highly targeted and help the workforce to have a clear vision of the desired outcome.
The supply chain is a network comprising a business and its suppliers who ensure materials are processed into consumable goods and distributed to the end consumers.
Sustainable Development Goals have been established by 191 member states of the United Nations to make significant improvements in 17 areas like poverty, hunger, health and well-being, education, etc.
Wrapping Up
New entrepreneurs may find it challenging to understand the industry jargon in the initial stages. This glossary can help them understand the common business terms to learn the professional language quickly.
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