Business Planning Glossary
Use this glossary as a quick reference when discussing strategy, finance, or operations.
| Term | Definition |
|---|---|
| Business Plan | A written document outlining a company's goals, strategies, and financial projections. |
| Market Analysis | Research that determines the size, characteristics, and trends of a target market. |
| SWOT Analysis | A framework for identifying strengths, weaknesses, opportunities, and threats. |
| KPI (Key Performance Indicator) | A measurable value used to gauge how effectively a company is achieving its objectives. |
| ROI (Return on Investment) | The ratio of net profit to the cost of an investment, expressed as a percentage. |
| Value Proposition | A clear statement explaining why customers should choose a product or service. |
| Revenue Streams | The various ways a business generates income from its products or services. |
| Operating Expenses | The ongoing costs required to run a business, excluding the cost of goods sold. |
| Break-Even Analysis | A calculation that determines the point at which revenue equals total costs. |
| Cash Flow | The net amount of cash being transferred into and out of a business. |
| Profit Margin | The percentage of revenue that remains after deducting all expenses. |
| Target Market | The specific group of consumers a business aims to reach with its offerings. |
| Customer Persona | A fictional representation of an ideal customer based on data and research. |
| Competitive Advantage | An attribute or capability that allows a company to outperform its rivals. |
| PEST Analysis | A method for assessing external factors: Political, Economic, Social, and Technological. |
| Marketing Funnel | A model describing the stages a customer goes through before making a purchase. |
| Burn Rate | The rate at which a startup spends its available capital before generating positive cash flow. |
| Bootstrapping | Starting and growing a business using personal resources without external funding. |
| Seed Funding | Initial capital used to start developing a product or business. |
| Scalability | The ability of a business to handle increased demand without compromising performance. |
This glossary can be freely referenced in blog posts or articles that discuss strategic planning or AI in business.