February 1, 2024
Common Entrepreneur Terms
For those starting their entrepreneurship journey, getting to know some of the business jargon is vital to understanding this new world, and what others are talking about. It will also help you express yourself in a way that is familiar to potential partners, investors, and more.
Acquisition
Taking ownership of another business. Frequently used in conjunction with the word merger, as in mergers and acquisitions or M&As.
Advertising
The activity of attracting public attention to a product or business through paid announcements in print, broadcast, or electronic media. Not to be confused with marketing or public relations.
Angel Investors
Individuals who back emerging entrepreneurial ventures, usually as a bridge to get from the self-funded stage to the level of business that would both need and attract venture capital. Funding level ranges anywhere from $50,000 to $2 million.
Appraisal
A formal estimate of the value of something on the open market. It also describes how the estimation and conclusion of value was made.
Barter
Direct exchange of merchandise and/or services between businesses.
Business Incubator
Provides workspace, coaching, and support services to entrepreneurs and early-stage businesses.
Business Valuation
An estimate of the worth of a business entity and its assets.
Consumer Direct Marketing
A form of network marketing in which the distributors are all consumers and must also buy the product for their personal use.
Copyright
A form of protection for published and unpublished literary, scientific, and artistic works that have been fixed in a tangible or material form.
Corporation
A body that is granted a charter recognizing it as a separate legal entity having its own rights, privileges, and liabilities distinct from those of its members. The primary advantage of a corporation is that it shields its investors from personal liability for any losses a corporation may experience.
Downline
In a multilevel marketing business, the collection of all people signed up underneath an individual on which the individual receives payment on their sales.
Due Diligence
The inquiry process of obtaining sufficient and accurate disclosure of all material documents and other information which may influence the outcome of the transaction.
Entrepreneur
A person who organizes, operates, and assumes the risk for a business venture
General Partnership
An organizational structure in which each general partner shares in the administration, profits, and losses of the operation.
Home-Based Business
A business whose primary office is in the owner's home. The business can be any size or any type as long as the office is located in a home.
Intrapreneur
Someone who takes on entrepreneur-like ventures within a large corporate environment.
Independent Contractor
One who practices an independent trade, business, or profession in which they offer their services to the public. The person contracting for their services must have the right to control or direct only the result of the work and not the means and methods of accomplishing the result.
Joint Venture
A legal entity created by two or more businesses joining together to conduct a specific business enterprise with both parties sharing profits and losses. It differs from a strategic alliance in that there is a specific legal entity created.result.