Business terminology made simple

Greetings students and business people. Today we are talking about business terms, words and phrases that are necessary for any business owner to have as part of their repertoire. As you are probably aware , i am a journalism student meaning that i have never been fascinated with numbers and anything about the economy, indexes, margins makes me run for the hills. I only realised how crucial it was for me to know those things when a customer asked me what my profit margins were like and i had no idea what she was talking about. Therefore this post and many others to follow have simple explanations for complex and headache inducing business terms. First we will discuss crucial terms and ideas usually useful when you are thinking about a prospective business idea or you are thinking about applying for a loan at one of your local banks or companies.

• Business proposal- as the name suggests it is a document that proposes something to the reader or recipient of the document. When you apply for a loan they usually ask for this proposal which outlines how you to propose to carry out the idea, pay off your debt, make profits etc

https://blog.bidsketch.com/articles/how-to-write-a-business-proposal/

• Business Plan -this is very similar to the business plan but is different in that it is for your personal use. It is normal to draft a business plan when you come up with your business idea. The plan acts as a blueprint and helps you not to deviate.

•  Profit margin/profitablity- this is literally the foundation upon which your business rests. It refers to the amount of money that you are going to make from your business. That is the money that remains when you have paid employees, debts, purchased new products etc. Every business owner should be aware of their percentage profits every month.

• Suppliers- these are the people that hold your business together because like the name implies, they supply you with all the goods and services required for the operation of your business. These can include auditors, consultants, lawyers, producers etc

• Marketing /Advertising strategies - this refers to methods that a business owner uses in ensuring the success of their product. It entails making consumers aware of the product and advertising the product to them through social media, news papers and media houses and pamphlets.

• Target Markets-this literally refers to the customers that have the highest probabiltiy of purchasing your product. Every entrepreneur has to research their potential market before launching any products to ensure that they do not incur losses.

http://articles.bplans.com/business-term-glossary/

http://www.dummies.com/how-to/content/retail-business-terms.html

http://www.dummies.com/how-to/content/business-marketing-plan-financial-terminology.html

http://www.businessballs.com/business-dictionary.htm

http://www.allbusiness.com/barrons_dictionary/

For further reading consult the links i have posted above and make yourself a business terminology expert. Watch the video for more business terminology. Also watch the video to Happy money making shamwari