Small Business Financial Terms

Costs that vary based on the units sold by an enterprise.

• Variable Costs
• Fixed Cost

Investors who make investments in a startup or small business and do not expect an immediate or large return on investment; typically "family and friends".

• Angel Investors
• Loan

Other types of debt (or money you owe someone else) other than a mortgage.

• Notes Payable
• Revenue

An obligation you have to pay someone else money. Also called a debt or a loan.

• Liabilities
• Assets

Fixed costs plus variable costs.

• Total Costs
• Profit

A financial statement that reports assets, liabilities, and owner's equity on a specific date.

• Balance Sheet
• Accounts Payable

The costs of operating a business.

• Expenses
• Capital

Costs that make up one unit of what you sell. These can be labor costs as well as material costs.

• Cost of Goods Sold
• Bank Loan

Units times price.

• Total Revenue
• Profit

The ability to borrow money or access goods or services with the understanding that you'll pay later.

• Credit
• Debt