1099 Form: A 1099 is a tax form used to report income earned outside of traditional employment, like freelance, contract, or side hustle earnings. If you earn $600 or more from a client in a year, they’re typically required to send you a 1099-NEC. Business owners also must issue 1099s to independent contractors they hire. There are different types—1099-MISC for miscellaneous income, 1099-K for payment processors like PayPal, and 1099-DIV or 1099-INT for dividends and interest. It’s essential for tracking non-W2 income and filing accurate taxes.

Accounts Payable (AP): Accounts Payable refers to the money a business owes to suppliers or vendors for goods and services received but not yet paid for. It’s recorded as a liability on the company’s balance sheet and typically involves short-term obligations like inventory, utilities, or outsourced services. Managing AP efficiently helps maintain good vendor relationships and cash flow, as overdue payments can hurt credit and operations.

Accounts Receivable (AR): Accounts Receivable represents the money owed to a business by its customers for goods or services delivered but not yet paid for. It’s recorded as an asset on the balance sheet and reflects short-term revenue the business expects to collect. Efficient AR management helps maintain cash flow, track customer payments, and reduce the risk of bad debt from unpaid invoices.

Backstock: Backstock refers to inventory that is not currently on the retail floor but is stored in the backroom or warehouse for future sales or restocking. It helps businesses quickly replenish shelves without waiting for new shipments, ensuring product availability. Managing backstock efficiently prevents over-ordering, reduces storage costs, and supports a smoother customer experience.

Budget: A budget is a financial plan that outlines expected income and expenses over a specific period, helping individuals or businesses manage money, set goals, and make informed decisions. For business owners, a budget is crucial for forecasting cash flow, controlling costs, planning growth, and ensuring long term sustainability. It can be adjusted monthly, quarterly, or annually depending on business needs.

Business Credit: Business credit is a financial profile separate from your personal credit that reflects your company’s ability to borrow and repay money. It’s built through business loans, credit cards, vendor accounts, and on-time payments, and is tracked by agencies like Dun & Bradstreet, Experian, and Equifax. Strong business credit can help you secure financing, negotiate better terms with suppliers, and protect your personal credit from business liabilities.

Business Model: A business model outlines how a company creates, delivers, and captures value essentially, how it makes money. It includes key components like target customers, revenue streams, cost structure, product or service offerings, and distribution channels. Whether it’s subscription-based, product sales, service-based, or ad supported, a clear business model helps guide strategy, attract investors, and sustain growth.

Business to Business (B2B): B2B refers to transactions, services, or relationships between two businesses rather than between a business and a consumer. Common in industries like manufacturing, software, consulting, and wholesale, B2B companies sell products or services to other businesses to help them operate, grow, or serve their own customers. B2B sales often involve longer decision cycles, customized solutions, and ongoing partnerships.

Business to Consumer (B2C): B2C describes a business model where companies sell products or services directly to individual customers, rather than other businesses. This includes retail stores, e-commerce shops, subscription services, restaurants, and more. B2C businesses typically focus on high-volume sales, fast decision-making, and strong branding or marketing to attract and retain consumers.

Cash Flow: Cash flow is the movement of money into and out of a business over a specific period, reflecting how well a company can pay its bills, invest in growth, and stay financially healthy. Positive cash flow means more money is coming in than going out, while negative cash flow can signal trouble. Tracking cash flow helps business owners manage expenses, avoid shortfalls, and make smarter financial decisions.

Cost: Cost is the total expense incurred by a business to create a product, deliver a service, or run operations. It includes direct costs like raw materials and wages, and indirect costs such as rent, equipment, or administrative expenses. Accurately tracking costs helps businesses price their offerings, control spending, and calculate profitability.

CRM (Customer Relationship Management): A CRM is a system or software tool that helps businesses manage and analyze customer interactions and data throughout the customer lifecycle. It’s used to track leads, automate follow ups, store contact information, and improve customer service. CRMs help businesses build stronger relationships, increase sales, and streamline communication across marketing, sales, and support teams.

E-Commerce: E-commerce, or electronic commerce, is the buying and selling of goods or services over the internet. It includes online stores, digital marketplaces, and platforms where businesses or individuals accept payments and manage transactions digitally. E-commerce allows businesses to reach customers globally, operate 24/7, and reduce overhead compared to brick-and-mortar stores.

E-Commerce: E-commerce, or electronic commerce, is the buying and selling of goods or services over the internet. It includes online stores, digital marketplaces, and platforms where businesses or individuals accept payments and manage transactions digitally. E-commerce allows businesses to reach customers globally, operate 24/7, and reduce overhead compared to brick-and-mortar stores.

Grants: Grants are non-repayable funds awarded by governments, organizations, or institutions to support specific business activities, projects, or goals. Unlike loans, grants don’t require repayment, making them a valuable source of capital for startups, nonprofits, or small businesses. They often come with eligibility requirements and reporting obligations, but they can fund everything from equipment to research to community programs.

Interest: Interest is the cost of borrowing money, expressed as a percentage of the loan amount, or the return earned on savings or investments. When you borrow, you pay interest to the lender; when you save or invest, you earn interest from the bank or institution. Understanding interest is key to managing loans, credit, and investment decisions in any business.

Inventory: Inventory refers to the goods a business holds for the purpose of selling or producing products. It includes raw materials, work-in-progress items, and finished goods ready for sale. Managing inventory effectively helps prevent stockouts, reduce storage costs, and keep cash flow steady, especially in retail, manufacturing, and e-commerce businesses.

Investor: An investor is an individual or organization that puts money into a business, project, or asset with the expectation of earning a financial return. In the startup world, investors can include angel investors, venture capitalists, or equity crowdfunding participants. They may provide capital in exchange for ownership, equity, or interest, and often bring strategic guidance or industry connections along with their funding.

KPI (Key Performance Indicator): A KPI is a measurable value that shows how effectively a business or team is achieving specific objectives. Common KPIs include revenue growth, customer retention, website traffic, or conversion rates depending on the business type and goals. Tracking KPIs helps founders monitor progress, make data-driven decisions, and stay focused on what matters most.

Loss Leaders: Loss leaders are products or services sold at a loss to attract customers, with the goal of encouraging additional purchases that are more profitable. This strategy is commonly used in retail and e-commerce to drive traffic, increase brand awareness, or upsell higher-margin items. While the initial sale loses money, the overall strategy aims to boost total revenue and customer loyalty.

Margins: Margins refer to the difference between a business’s revenue and its costs, usually expressed as a percentage. Common types include gross margin (revenue minus cost of goods sold) and net margin (profit after all expenses). Margins help measure profitability, set pricing strategies, and determine how efficiently a business operates. Higher margins typically mean more room for growth and reinvestment.

NDA (Non-Disclosure Agreement): An NDA is a legal contract that prevents one or more parties from sharing confidential information with others. It’s commonly used when discussing partnerships, hiring freelancers, or sharing proprietary business details. NDAs help protect intellectual property, trade secrets, and sensitive strategies, ensuring trust and legal recourse if information is leaked.

OPM (Other People’s Money): OPM refers to the use of external funding like loans, investor capital, or credit to start or grow a business instead of using your own personal savings. It’s a common strategy in entrepreneurship and real estate to leverage resources, reduce personal risk, and scale faster. While powerful, using OPM requires careful planning and accountability to avoid debt traps or equity dilution.

Personal Guarantor: A personal guarantor is someone often a business owner who agrees to be personally responsible for a loan or credit line if the business can’t repay it. This means their personal assets (like savings, income, or property) can be used to cover the debt. Lenders often require a guarantor when a business is new, has limited credit, or poses higher risk.

Profit: Profit is the amount of money a business keeps after subtracting all expenses from its total revenue. It’s a key measure of financial success and comes in forms like gross profit (revenue minus cost of goods sold) and net profit (what’s left after all operating costs, taxes, and interest). Profit shows whether a business is sustainable and capable of growth.

Request for Proposal (RFP): An RFP is a formal document issued by a company or organization to solicit bids from vendors or service providers for a specific project or solution. It outlines the project requirements, budget, timeline, and evaluation criteria. Businesses respond to RFPs with detailed proposals, and winning an RFP can lead to significant contracts or partnerships—especially in B2B and government sectors.

ROI (Return on Investment): ROI is a performance metric that measures the profitability of an investment by comparing the return (or gain) to the original cost. It’s usually expressed as a percentage and helps businesses evaluate whether a marketing campaign, product launch, or purchase was worth the expense. A high ROI means you gained more value than you spent—critical for smart decision-making and growth.

Revenue: Revenue is the total amount of money a business earns from selling its products or services before any expenses are deducted. It’s often referred to as the “top line” on an income statement and serves as a key indicator of a company’s size and growth. Consistent or increasing revenue shows strong demand and is essential for covering costs and generating profit.

Scalability: Scalability refers to a business’s ability to grow revenue and operations without a matching increase in costs. A scalable business can handle more customers, orders, or output efficiently often through automation, streamlined processes, or digital tools. High scalability means the company can expand quickly and profitably as demand grows.

SMBs (Small and Medium-Sized Businesses): SMBs are businesses with fewer employees and lower revenue than large corporations typically defined as having fewer than 500 employees in the U.S. They include everything from solo entrepreneurs to growing local companies. SMBs make up the backbone of the economy, often operating with leaner teams, tighter budgets, and a focus on innovation or community service.

SS-4: The SS-4 is an IRS form used to apply for an Employer Identification Number (EIN), which is like a Social Security number for a business. Business owners fill out Form SS-4 to officially register their company for tax purposes, open business bank accounts, or hire employees. It’s a key step in forming an LLC, corporation, or partnership in the U.S.

Startup(s): Startups are newly formed businesses typically in the early stages of development built to solve a problem or offer a unique product or service, often with growth and scalability in mind. While they can exist in any industry, startups are especially common in tech and innovation sectors. They usually operate with limited resources, a lean team, and a focus on rapid testing, learning, and scaling.

Target Market: A target market is the specific group of people a business aims to serve with its products or services. This group is defined by shared characteristics like age, location, income level, lifestyle, or buying habits. Knowing your target market helps shape marketing, product development, and messaging—so you reach the right people with the right offer.

Trade Lines: Trade lines are records of credit accounts listed on a business or personal credit report, including details like the creditor’s name, account type, balance, and payment history. For businesses, trade lines can include vendor credit, credit cards, or loans. Building positive trade lines helps establish strong credit, which can improve financing opportunities and vendor terms.

Upsell: An upsell is a sales strategy where a business encourages a customer to purchase a more expensive version of a product, add premium features, or buy additional items to increase the total sale value. Common in both retail and service industries, upselling boosts revenue and enhances the customer experience by offering more value or convenience.

Valuation: Valuation is the process of determining the current worth of a business, asset, or company. It’s commonly used during fundraising, mergers, acquisitions, or when selling a business. Valuation can be based on revenue, profit, market potential, or assets, and helps investors, founders, and buyers make informed decisions about financial opportunities.