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BUSINESS TERMS ALL ENTREPRENEURS SHOULD KNOW
When you’re an entrepreneur, there’s more to having a good vocabulary than just knowing a few 50-cent words. There’s a specific set of terms that will help you navigate the business world and elevate your credibility among your professional peers.
Memorize and understand the terms below, and you’ll be well on your way to building a healthy business vocabulary.
Expenses: Total costs of running a business, including supplies, investments, staff, equipment, etc.
Overhead: The general cost of operating a business
Product: The good or goods sold for profit
Budget: The amount of money a business can spend to operate
Accounting: The process of recording detailed financial information
Outsourcing: Hiring workers outside of the company to perform services on behalf of the company
Return on investment (ROI): The amount of money a business gets in return for a particular investment
Revenue: The entire amount of money earned before a business subtracts expenses
Profit: The amount of money earned after a business subtracts expenses
Assets: The entire value of a company, including its holdings
Liabilities: How much a business owes
Net worth: Assets minus liabilities
Now that you have these terms under your belt, it’s time to earn revenue and start profiting from your product!