Business glossary
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80 plain-English definitions for business planning, finance, research and operations. Search a term or browse by letter.
80 terms across 7 categories
Core Planning & Strategy Terms
- Mission Statement — link to definition
A short statement that explains why a company exists and what core purpose it serves for its customers.
- Vision Statement — link to definition
A forward-looking statement that describes what a company aims to become or achieve in the long term.
- Business Model — link to definition
The way a company creates, delivers, and captures value, including how it makes money and serves customers.
- Strategic Roadmap — link to definition
A high-level plan that outlines key initiatives, milestones, and timelines required to achieve business goals.
- Objectives and Key Results (OKRs) — link to definition
A goal-setting framework that defines what a company wants to achieve and how success will be measured.
- Minimum Viable Product (MVP) — link to definition
The simplest version of a product that can be released to test assumptions and gather customer feedback.
- Product-Market Fit — link to definition
The point where a product meets a strong market demand and customers consistently choose, use, and recommend it.
- Value Chain — link to definition
The set of activities a company performs to deliver a product or service, from sourcing to after-sales support.
- Business Case — link to definition
A structured document that justifies a project or investment by outlining costs, benefits, and risks.
- Strategic Initiative — link to definition
A major project or program designed to move the organization toward its long-term strategic goals.
Financial Planning & Metrics Terms
- Customer Acquisition Cost (CAC) — link to definition
The average cost of acquiring a new customer, including marketing, sales, and related expenses.
- Customer Lifetime Value (CLV or LTV) — link to definition
The total revenue a business expects to earn from a customer over the entire relationship.
- LTV to CAC Ratio — link to definition
A metric that compares customer lifetime value to acquisition cost to assess profitability and scalability.
- Monthly Recurring Revenue (MRR) — link to definition
Predictable monthly revenue generated from subscriptions or ongoing contracts.
- Annual Recurring Revenue (ARR) — link to definition
The yearly value of recurring revenue from subscriptions or long-term contracts.
- Churn Rate — link to definition
The percentage of customers or recurring revenue lost over a given period.
- Runway — link to definition
The amount of time a business can operate before running out of cash, based on current burn rate.
- Gross Margin — link to definition
The percentage of revenue left after subtracting the direct cost of goods or services sold.
- Unit Economics — link to definition
The revenue and cost associated with serving a single customer or unit, used to test the viability of a business model.
- Sensitivity Analysis — link to definition
A technique that shows how changes in key assumptions affect financial projections and outcomes.
Market Research, Marketing & GTM Terms
- Total Addressable Market (TAM) — link to definition
The total revenue opportunity available if a product or service achieved 100% market share.
- Serviceable Available Market (SAM) — link to definition
The portion of the total market that fits a company's product, geography, or regulatory constraints.
- Serviceable Obtainable Market (SOM) — link to definition
The realistic share of the market a business expects to capture within a specific timeframe.
- Market Segmentation — link to definition
The process of dividing a broad market into smaller groups based on shared characteristics or behaviors.
- Positioning Statement — link to definition
A concise description of how a product is uniquely suited to a target market compared to competitors.
- Unique Selling Proposition (USP) — link to definition
A clear benefit that differentiates a product or service from alternatives in the market.
- Buyer Journey — link to definition
The stages a potential customer goes through from awareness to consideration, purchase, and retention.
- Demand Generation — link to definition
Marketing activities that create awareness and interest in a product to drive qualified leads and pipeline.
- Product-Led Growth (PLG) — link to definition
A go-to-market strategy where the product itself drives acquisition, activation, and expansion.
- Sales Journey — link to definition
A visual model of how prospects move through stages from first contact to closed customer.
Operations, Execution & Risk Terms
- Operating Model — link to definition
The way a company organizes people, processes, and technology to deliver its products or services.
- Standard Operating Procedure (SOP) — link to definition
A documented step-by-step process that outlines how to perform a specific task or activity.
- Governance — link to definition
The structures, policies, and decision-making processes that guide how a company is directed and controlled.
- Risk Management — link to definition
The process of identifying, assessing, and mitigating potential threats to business objectives.
- Contingency Plan — link to definition
A predefined response plan for unexpected events that could disrupt normal business operations.
- Key Risk Indicator (KRI) — link to definition
A metric used to track exposure to a specific risk and provide early warning of potential issues.
- Business Continuity Plan (BCP) — link to definition
A documented strategy that ensures critical operations can continue during and after a disruption.
- Operational Efficiency — link to definition
The ability to deliver products and services in a cost-effective, timely, and reliable way.
- Change Management — link to definition
The structured approach used to manage organizational changes in processes, systems, or structure.
- Stakeholder Analysis — link to definition
The process of identifying stakeholders and understanding their interests, influence, and impact on a project.
AI, Analytics & Automation Terms
- AI Business Plan Generator — link to definition
A software tool that uses artificial intelligence to create structured business plans from prompts and data.
- AI Business Planning Tool — link to definition
A platform that combines AI, templates, and analytics to help businesses design strategies and financial plans.
- AI Market Research — link to definition
The use of AI to collect, analyze, and summarize market, customer, and competitor data for decision-making.
- AI Financial Forecasting — link to definition
The use of machine learning and AI models to project revenue, costs, and cash flow under different scenarios.
- AI Business Assistant — link to definition
An AI system that helps business owners plan, analyze, and automate tasks such as research, forecasting, and reporting.
- AI Agent — link to definition
An AI-driven software entity that can autonomously execute tasks or workflows based on goals and rules.
- Market Research Automation — link to definition
The use of AI and software to automatically gather, synthesize, and visualize market and customer insights.
- AI Competitor Analysis — link to definition
The use of AI tools to scan competitor websites, content, and reviews to extract patterns and differences.
- Scenario Planning — link to definition
A planning method that uses different assumptions to model multiple future outcomes and strategic responses.
- Decision Intelligence — link to definition
The discipline of combining data, analytics, and AI to improve the quality and speed of business decisions.
Funding, Startup & Investor Terms
- Pre-Seed Funding — link to definition
The earliest external capital raised to validate an idea and build an initial prototype or MVP.
- Series A Funding — link to definition
A significant investment round used to scale product, team, and go-to-market once early traction is proven.
- Valuation — link to definition
The estimated monetary worth of a company, often used when raising capital or selling equity.
- Cap Table (Capitalization Table) — link to definition
A record of who owns equity in a company, including founders, employees, and investors.
- Dilution — link to definition
The reduction in existing shareholders' ownership percentages when new shares are issued.
- SAFE (Simple Agreement for Future Equity) — link to definition
A funding instrument where investors provide capital now in exchange for future equity at a later priced round.
- Convertible Note — link to definition
A type of loan that converts into equity at a future financing event, often with a discount or valuation cap.
- Term Sheet — link to definition
A non-binding document outlining the key conditions and structure of a potential investment.
- Due Diligence — link to definition
The detailed investigation investors conduct into a company's financials, operations, and risks before investing.
- Exit Strategy — link to definition
The planned way for investors and founders to realize returns, such as acquisition or IPO.
Foundational Business Planning Basics
- Business Plan — link to definition
A written document outlining a company's goals, strategies, and financial projections.
- Market Analysis — link to definition
Research that determines the size, characteristics, and trends of a target market.
- SWOT Analysis — link to definition
A framework for identifying strengths, weaknesses, opportunities, and threats.
- Key Performance Indicator (KPI) — link to definition
A measurable value used to gauge how effectively a company is achieving its objectives.
- Return on Investment (ROI) — link to definition
The ratio of net profit to the cost of an investment, expressed as a percentage.
- Value Proposition — link to definition
A clear statement explaining why customers should choose a product or service.
- Revenue Streams — link to definition
The various ways a business generates income from its products or services.
- Operating Expenses — link to definition
The ongoing costs required to run a business, excluding the cost of goods sold.
- Break-Even Analysis — link to definition
A calculation that determines the point at which revenue equals total costs.
- Cash Flow — link to definition
The net amount of cash being transferred into and out of a business.
- Profit Margin — link to definition
The percentage of revenue that remains after deducting all expenses.
- Target Market — link to definition
The specific group of consumers a business aims to reach with its offerings.
- Customer Persona — link to definition
A fictional representation of an ideal customer based on data and research.
- Competitive Advantage — link to definition
An attribute or capability that allows a company to outperform its rivals.
- PEST Analysis — link to definition
A method for assessing external factors: Political, Economic, Social, and Technological.
- Marketing Journey — link to definition
A model describing the stages a customer goes through from early awareness to purchase.
- Burn Rate — link to definition
The rate at which a startup spends its available capital before generating positive cash flow.
- Bootstrapping — link to definition
Starting and growing a business using personal resources without external funding.
- Seed Funding — link to definition
Initial capital used to start developing a product or business.
- Scalability — link to definition
The ability of a business to handle increased demand without compromising performance.