Bplans GlossaryBplans Glossary

Bplans Glossary

At Bplans, it's our goal to make it easy for you to start and run your business. The Bplans glossary of common business terms will help you learn about key small business and entrepreneurship topics.

Recent Articles Published by Bplans Glossary

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What Is a Life Cycle?

A life cycle is a model depicting the sales volume cycle of a single product, brand, service, or a class of products or services over time described in terms of the four phases of introduction, growth, maturity and decline. See product life cycle as well.  Read more »

planning

What Is Perceived Risk?

Perceived risk is the extent to which a customer or client is uncertain about the consequences of an action, often relating to purchase decisions.   Read more »

planning

What Are Resource Requirements (Websites)?

Your resource requirements are the personnel, time, space and equipment necessary to create and maintain your website. Remember that a website is never done—it will always require resources, some of which will be used to periodically create new content. Read more »

planning

What Are Switching Costs?

Switching costs are the costs incurred in changing from one provider of a product or service to another. Switching costs may be tangible or intangible costs incurred due to the change of this source. Read more »

planning

What Is a Partnership?

Partnerships are hard to describe, because they change so much. They are governed by state laws, but a Uniform Partnership Act that has become the law in most states. That act, however, mostly sets the specific partnership agreement as the real legal core of the partnership, so the legal details can vary widely. Usually the... Read more »

planning

What Is Capital Expenditure?

Spending on capital assets (also called plant and equipment, or fixed assets, or long-term assets). Capital assets are long-term assets, also known as fixed assets. Read more »

planning

What Is Website Traffic?

In broad, general terms, website traffic is the number of visitors and visits a website receives. This traffic can be measured by a variety of website metrics. Read more »

planning

What Are Materials Included in the Cost of Sales?

These are materials involved in the assembly or manufacture of goods for sale. Read more »

planning

What Is Gross Margin?

Gross margin is the difference between total sales revenue and total cost of goods sold (also called total cost of sales). This can also be expressed on a per unit basis, as the difference between unit selling price and unit cost of goods sold. Gross margin can be expressed in dollar or percentage terms. Read more »

planning

What Are Operating Expenses?

Operating expenses are expenses incurred in conducting normal business operations. Operating expenses may include wages, salaries, administrative and research and development costs, but excludes interest, depreciation, and taxes. To learn more, check out How to Create an Expense Budget. Read more »

planning

Who Is Everett Rogers?

Everett Rogers is an author who studied and published work on the diffusion of innovation. Read more »

planning

What Is Short-Term?

Short-term is normally used to distinguish between short-term and long-term, when referring to assets or liabilities. Definitions vary because different companies and accountants handle this in different ways. Accounts payable is always a short-term liability, and cash, accounts receivable and inventory are always short-term assets. Most companies call any debt of less than five-year terms... Read more »

planning

What Is the First Mover?

The first mover is a company that attempts to gain an unchallengeable, privileged market position by being the first to establish itself in a given market. Read up on the first mover advantage and first mover disadvantage too, and for more on defining your market and target customers, check out How to Do Market Research,... Read more »

planning

What Is a Broker?

A broker is an intermediary that serves as a go-between for the buyer or seller. Check out our latest articles on law and taxes for more information on the legal side of setting up and managing your business. Read more »

planning

What Is Gross Margin Percent?

The gross margin percent is the gross margin divided by sales, displayed as a percentage. Acceptable levels depend on the nature of the business. There are providers who can deliver standard gross margins for different types of industries based on SIC (Standard Industry Classification) codes that categorize industries. Read more »

planning

What Are Success Factors?

Primary success factors include considerations regarding: The choice of business based on the status of the market Education and experience People and collaboration Creativity and innovation versus business skills and networks Incubation potential Leveraging available resources Management practices Read more »

planning

What Is Direct Marketing?

Direct marketing refers to any method of distribution that gives the customer access to an organization’s products and services without intermediaries; also, any communication from the producer that communicates with a target market to generate a revenue producing response. For further reading, our article on the outline for a marketing plan can help you plan your... Read more »

planning

What Is a Business Mission?

A business mission is, also called a mission statement, is a brief description of an organization’s purpose with reference to its customers, products or services, markets, philosophy, and technology. For more on your business mission, see How to Write a Mission Statement in 5 Easy Steps and Mission Statement Examples. Read more »

planning

What Is Value?

Value is the ratio of perceived benefits compared to price for a product or service. Check out How to Create a Unique Value Proposition for more on working out exactly what the value of your product or service is. Read more »

planning

What Is Equity Financing?

Equity financing refers to the sales of some portion of ownership in a venture to gain additional capital for startup. See Bplans’ articles on angel investment and venture capital for more. Read more »

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