Small Business Terms Every Entrepreneur Should Know

#howtobusiness #deannadias #smallbusinessterms #smallbusiness #entrepreneur

Updated as of 15 March 2021

1099 NEC - Non Employee Compensation form that is a 3 part form. You would use this form to give to an individual/business if you paid them to do work for your business. On the other hand you would receive this form to report as income if your business did work for another company

Black - when a business breaks even or profits after revenue(money made) is more that expenses or deductions

Blockchain - a digital ledger and unit of information for cryptocurrency transactions and businesses

Bootstrapping - using your own money to start and fund your business

Business credit - the ability for a business (once approved) to access money loaned to the business to make business purchases

Business Plan - a multi page document that breaks down the operating, member, and financial aspects of a business

Employer Identification Number (EIN) - your business' own "social security number" that you use for state registration and filing taxes both federal and state. Only LLCs, Partnerships, C corps, S corps get EINs. This number also has benefits.

Expenses - Anything you have to pay to operate your business, to entertain your clients, or paying your employees

Direct Marketing - when you advertise to consumers directly through your website, email marketing, mailings, phone calls, or in person

Gross profit - profit (total money a business earns) that hasn't had any expenses deducted

Income StatementA document that used to report your business' profits and losses over a specific time period. This is a financial document

Inventory - items that your business purchases to resell or to create a product you sell or items that is used in the business

Limited Liability Company (LLC)A structure that designed to protect a business owner(s) personal property from lawsuits or judgements.

Marketing — how a business relates to and properly engages with its target audience and in the marketplace. While doing this business owners promote their product and/or services to consumers.

Mission Statement — a summarization of your company’s core beliefs, and overall goals

Net 30/60/90 - the amount of days you have to pay back a creditor that gave you business credit

Red - when a company has lost more money than they've made after expenses and deductions

Single Member LLC - an LLC owned by one person that has the same structure as an LLC or Partnership LLC

Sole proprietor - A business structure where the individual files income and business taxes using their own Social Security Number (SSN). If the owner incurs any lawsuits or judgement then that owner is personally responsible.

Trademark - a product, logo, and or word used by a company, that is filed through a government entity with the intentions on protecting them from being used by anyone else

If you're new in business did this list help you out? If you're pretty seasoned in the game and you think I could add a few more terms to this list drop it in the comments.

Thank you so much for dropping by and don't forget to leave a comment!

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