Small Business Synergy Glossary

Welcome to the Small Business Synergy Glossary, your quick-reference guide to the most important terms every entrepreneur should know. Whether you’re just starting your first venture or growing your business, these definitions will help you understand key concepts in finance, marketing, operations, and strategy.

A

  • Accounts Payable (AP): Money a business owes to suppliers or vendors for goods and services received.
  • Accounts Receivable (AR): Money owed to a business by its customers for products or services delivered.
  • Asset: Anything of value owned by a business, such as cash, inventory, equipment, or property.
  • Audience Targeting: Identifying and focusing marketing efforts on a specific group of customers most likely to buy.

B

  • Balance Sheet: A financial statement that shows a company’s assets, liabilities, and equity at a given point in time.
  • Bookkeeping: Recording a business’s daily financial transactions, including sales, expenses, and payments.
  • Break-Even Point: The point where total revenue equals total costs, meaning the business makes no profit but no loss either.
  • Business Plan: A written document outlining a company’s goals, strategies, target market, and financial forecasts.

C

  • Cash Flow: The movement of money into and out of a business, showing liquidity and financial health.
  • Content Marketing: Creating and sharing valuable content to attract and retain customers.
  • Cost of Goods Sold (COGS): The direct costs of producing goods sold by a business (materials, labor, etc.).
  • Customer Acquisition Cost (CAC): The total cost of gaining a new customer, including marketing and sales expenses.

D

  • Depreciation: The gradual loss of value of an asset over time.
  • Digital Marketing: Promoting products or services through online channels such as social media, email, and search engines.
  • Due Diligence: Research and analysis performed before making an important business decision or investment.
  • Diversification: Expanding products, services, or markets to reduce risk.

E

  • E-Commerce: The buying and selling of goods and services online.
  • Elevator Pitch: A short, persuasive business summary delivered in about 30–60 seconds.
  • Equity: Ownership interest in a business, often represented by shares of stock.
  • Expense Ratio: The percentage of revenue used to cover business expenses.

F

  • Fixed Costs: Expenses that remain the same regardless of business activity (rent, salaries, insurance).
  • Franchise: A business model where an individual runs a business using another company’s brand, systems, and support.
  • Funding Round: A stage of raising investment from investors to grow a business.
  • Forecasting: Predicting future business performance based on data and trends.

G

  • Gross Profit: Revenue minus the cost of goods sold (COGS).
  • Growth Strategy: A plan to expand sales, customer base, or market share.
  • Guerrilla Marketing: Unconventional, creative marketing tactics that aim for maximum impact with minimal cost.

H

  • Human Resources (HR): The department or function that manages hiring, training, benefits, and employee relations.
  • Home-Based Business: A business that operates primarily from a home rather than a commercial space.
  • Hybrid Business: A business that combines different models, such as online and in-person services.

I

  • Intellectual Property (IP): Creations like trademarks, patents, copyrights, and trade secrets that protect business assets.
  • Inventory: The raw materials, work-in-progress, and finished goods a business holds for sale.
  • Invoice: A document sent to customers requesting payment for goods or services provided.

J

  • Joint Venture (JV): A partnership between two or more businesses to achieve a specific goal or project.

K

  • Key Performance Indicators (KPIs): Metrics used to measure business performance against objectives.

L

  • Liabilities: Debts or financial obligations a business owes, such as loans, accounts payable, or mortgages.
  • Limited Liability Company (LLC): A business structure that combines liability protection with flexible tax options.
  • Lean Startup: A methodology that emphasizes testing, customer feedback, and minimal waste in building a business.

M

  • Market Research: Collecting and analyzing data about target customers, competitors, and industry trends.
  • Margin: The difference between sales revenue and costs, often expressed as a percentage.
  • Minimum Viable Product (MVP): The simplest version of a product that can be launched to test customer demand.

N

  • Net Profit: The money left after all expenses, taxes, and costs are deducted from total revenue.
  • Networking: Building relationships with other professionals to share opportunities, ideas, or partnerships.

O

  • Operating Expenses (OPEX): Ongoing costs required to run a business, excluding production costs.
  • Outsourcing: Hiring external individuals or companies to handle tasks instead of doing them in-house.

P

  • Payroll: The process of paying employees, including wages, taxes, and benefits.
  • Pitch Deck: A visual presentation used to explain a business idea to investors or stakeholders.
  • Profit Margin: A measure of profitability, calculated as net income divided by revenue.

How to Use This Glossary

  • Browse alphabetically to find quick definitions.
  • Click on a term (future expansion) to read a detailed blog post with examples.
  • Use this glossary alongside other resources on SmallBusinessSynergy.com.