The intended group of customers you want to serve.

A one-page financial projection that lists your major revenue sources and expenses.

marketing is how you intend to communicate to large numbers of customers, motivating them to learn more about your business. (Example: advertising is a marketing tool.) • selling is how you move specific customers to buy from you. (Example: a special event in your store’s parking lot featuring discount prices is selling.) Marketing campaigns and selling efforts should support one another. All your efforts to help customers learn about your business and buy from you should emphasize your differentiating offerings.

A detailed To Do List of steps you’ll need to take to go from concept and funding all the way to business launch. The more detailed you make a Launch Plan – specific tasks, projected costs, targeted task completion dates and the team member responsible for each step – the better you can measure and manage the process it takes you to launch your business

Software program to track financial information like budgets, expenditures, invoicing and payroll

Income. The amount of money earned from the sale of products/services.

The cost required for an item or service. The outflow of money to another person or group to pay for an item or service

Money paid by an employer to an employee for work done during a period of time

The amount of money spent to sell product or services. Includes advertising materials, promotions, public relations, and other expenses like salaries and travel.

Cost of running the business that does not lead to the generation of profit. Examples are accounting and legal expenses, administrative salaries, insurance, property taxes, rent, and utilities.

The value of funds in accounts or tangible machinery/production equipment

The trust that allows one party to provide money or resources to another party where that the second party does not reimburse the first party immediately.

A risky or daring journey or undertaking

The annual cost to you of your insurance

The amount you will pay before the insurance company reimburses you for a loss.

is a short, simple document that provides a clear summary of a proposed business venture.

Similar to an elevator speech, a concise, compelling description of the proposed venture.

A person or entity that may be interested in providing capital for your business venture.

A"hockey stick" projection is a revenue growth line sort of looks like a hockey stick - flat at first, and then a straight line up.

Product or services that experience regular and predictable changes that recur every calendar year.

How your customers and competitors responding to your marketing and selling strategies.

The ability to go beyond your customers into markets that have not been in your typical plan. For example, a restaurant offering private catering or a restaurant selling their signature desserts through local grocery stores.

An idea that is accepted as true or as certain to happen without proof.

A separate section in your Pro Forma that allows you to make varying assumptions that will help you avoid introducing errors in calculation into the pro forma spreadsheet. It allows you to determine which assumptions have the greatest impact on the bottom line.

A financial term that means "big enough to care about." An effective pro forma spreadsheet should only include line items that are big enough that they have a "material impact" on your overall financial projections

Insignificant changes that do not hurt the overall performance of a business. One good example of material impact is the cost of a business license. You know that you're going to have to pay for one or more city and/or state business license. The cost will likely be a few hundred dollars a year. You can project this cost with great certainty. But it's not material - a few hundred dollars more or less won't make or break your venture. So it's better to lump together licenses, use taxes, insurance and utilities into "overhead costs" and round up to the nearest thousand dollars what you believe these costs will be in the aggregate

The action of spending funds.

Cash in and out of the business over a period of time.

A venture spends much more money than it takes in as it establishes its operations, "captures" its first customers, and launches the marketing efforts necessary to create a market presence. The rate at which the company is losing money. Known as negative cash flow

The lowest point of cumulative cash flow - called the "nadir" or lowest point - is the minimum amount the venture will require in order to work through its early stages and emerge a vibrant, successful organization.

Cost that vary depending on the rise and fall of production. Examples of variable costs are wages and material.

Acronym for Information Technology

A worker that works independently by selling work or services by the hour, day or job with no intent to pursue a permanent or long-term arrangement with a single employer.

A phrase that means to add up or to make economic sense.

Bringing about strong emotions or feelings

Possible to do easily or conveniently.

Needs of customers that are currently not being addressed by your company or any company.

An advantage you have and can sustain over your competition. Financially sustainable and difficult for competitors to copy.

The expectation of money earned based on amount of investment.

Owner of information, knowledge, patent, copyright, trademark. Others are forbidden to use it.

A work or invention that is the result of creativity, such as manuscript or a design to which one has rights and for which one may apply for a patent, copyright, trademark, etc.

Every investor invests in people. Investors always evaluate the quality of the human capital in a venture when they assess whether a business concept is doable.

A team of talented, driven individuals led by a proven-effective business leader.

A future event or circumstance that is possible that cannot be predicted with certainty.

the quality or fact of being able to endure and continue with determination.

The ability to sustain prolonged physical or mental effort.

A situation involving exposure to danger." In the context of an entrepreneur, the "danger" is loss of capital, as well as the loss of time, effort, and personal reputation in a failed venture.

Risks associated with the success of a single venture.

Risks in a market sector that impact all competitors in that sector

Risks associated with the reputation and good standing of a venture

Risks associated with the financial standing / performance of a venture

Risks associated with the geography in which a venture operates

Risks associated due to government passing laws or regulations that could impact the ability to operate.

An action plan for implementing to identify, prioritize and implement actions to reduce risks.

Funds contributed by owner

When an entrepreneur or small business leader work long hours for little or no pay to make a new venture succeed.

A value proposition that they believe delivers benefits in excess of the costs required to offer their product or service. An innovation, service or feature intended to make a company or product attractive to customers.

A business created from scratch.

An existing business purchased from its

Statewide Micro-Enterprise Credential: Resource 23-01 – page 8 of 10

Statewide Micro-Enterprise Credential

Resource 23-01

owner. The entrepreneur / small business leader is acquiring the business because he / she believes the future potential of the business justifies the purchase price.

A proven business concept, an established brand, and all types of management support (accounting systems, personnel training, marketing campaigns, technology packages, etc.).

The person purchasing a franchise

The person or entity offering the sale of a franchise.

Money owed to a Franchisor per contract agreement.

A new business launched by two existing businesses. Both businesses contribute something of value to the new venture, and serve as partners in making the joint venture succeed. Typically, a joint venture enables JV partners to pursue business opportunities they couldn't pursue alone.

Maximum efficiency in representing information.