fbpx

Confused by Business Lingo? Brush up on These 5 Key Business Terms

Starting an online business certainly does not have to be complicated, but when encountering certain terms, first-time entrepreneurs may believe otherwise. Everything from writing the business plan to effectively networking can be a herculean task without the right information.

Set aside some time to review these 5 important business terms, then consider what impact they might have on your future business.

  1. Niche – A niche is a particular and clearly defined part of a larger market. Instead of just selling bicycles, a niche market would focus on road bikes for commuters.
  2. Profit and Loss Statement – This document sums up money in and money out for either the fiscal year or the quarter. Speaking of the fiscal year…
  3. Fiscal year – Unlike the calendar year, the fiscal year does not have to start on Jan. 1. In business, the fiscal year is the period of time for which the annual budget is calculated.
  4. Bylaw – These are the guidelines to which a company will adhere during all business operations and should be contained within a single document.
  5. Business structure – The vast majority of online entrepreneurs choose to structure their businesses as limited liability companies (LLCs) or as sole proprietorships. An LLC is an entity separate from its owner, whereas a sole proprietorship views the business and owner as only one entity.

These are by no means the only new terms you will be encountering on your journey through entrepreneurial success, but for those approaching their very first startup, they are an excellent place to begin.

Recent Posts