DHS - Micro-Enterprise State Certification Flashcards
A new hire that is a person the entrepreneur could like and respect.
Compatible
A principle or standard by which something may be judged or decided.
Criteria
The act of checking and changing measurements in order to ensure results are in an acceptable range. The process of making an action objective and as fact-based as possible.
Calibration
Ability to develop strategies and techniques to deliver or make products/services in the most cost effective and timely manner.
Operating Efficiencies
The capacity of a business to produce desired results with minimum expenditure of time, money, personnel, and materials.
Administrative Efficiencies
The ability to get more output from the same resources or getting the same output from fewer resources.
Financial Efficiencies
Developing and implementing policies and procedures that help your company recruit, compensate, evaluate, grow, and retain top performers.
Human Resources
Conceiving and implementing activities that increase revenues and profits.
Marketing/Sales
Developing and implementing policies and procedures that keep your customers satisfied and loyal.
Customer Service
Completing all the reports and activities that enable a company to maintain appropriate records, track financial results, pay appropriate taxes, and maintain adequate levels of “liquidity” (available cash) as well as positive credit.
Finance/Accounting
Completing the activities required for an organization to operate day to day including but not limited to real estate (for office space and/or production facilities), legal and purchasing.
Administration
Developing the internal and external technology capabilities required in today’s economy for a company to operate effectively and interact with customers in ways they prefer.
Technology
Completing the productive activities of the enterprise.
Operations
Giving control, authority, or jobs to another person.
Delegation
Major accomplishments that indicate that a venture’s level of success, and/or a point at which the venture must start considering a new approach.
Growth Milestones
Start-ups and small companies often face the choice between hiring employees to accomplish a task for using third-party vendors.
Make/Buy
Working directly with a single vendor, rather than evaluating bids from multiple vendors before deciding on the firm you’ll work with.
Sole Source
The network of vendors that enables a company to complete the development/assembly of its product or service.
Supply Chain
An investment or initiative is sustainable when the financial results are positive and replicable.
Sustainability
Interacting with other people to exchange information and develop contacts, especially to further one’s career.
Networking
The act of composing, talking, executing, or arranging anything without previous preparation.
Improvisation
Continuing a process without interruption.
Perpetual Cycle
A future expectation. A potential customer, investor, mentor, etc.
Prospective
Networking - to develop, learn, master new skills and habits.
Financial - to purchase an asset or object.
Acquisition
An activity or action that will maximize use and turn into a benefit.
Exploit
Misleading. Having an appearance of another but differing from the original or future development.
Spurious
Wordy. Expressing in more words than needed.
Verbose
To make a statement that is more understandable. To express a clear position.
Clarify
Out of ordinary and breaking the routine.
Discontinuous
Different than anything else. Attracts customers and generates sales that is different from other businesses.
Differentiated Offering
The intended group of customers you want to serve.
Target Market
A one-page financial projection that lists your major revenue sources and expenses.
Pro Forma
How you intend to communicate to large numbers of customers, motivating them to learn more about your business. Ex. Advertising is a tool.
Marketing
How you move specific customers to buy from you. Ex. A special event in your store’s parking lot featuring discount prices.
Selling
A detailed “to do list” of steps you’ll need to take to go from concept and funding all the way to business launch. The more detailed you make a it - specific tasks, projected costs, targeted task completion dates and the team member responsible for each step - the better you can measure and manage the process it takes you to launch your business.
Launch Plan
Software program to track financial information like budgets, expenditures, invoicing, and payroll.
Accounting System
Income. The amount of money earned from the sale of products/services.
Revenue
The cost required for an item or service. The outflow of money to another person or group to pay for an item or service.
Expense
The cost that it takes to produce a product or service. Includes materials and labor.
Cost of Goods
Money paid by an employer to an employee for work done during a period of time.
Personnel Cost
The amount of money it takes to supply heating, cooling, electricity, and water to a place of business.
Facility Cost
The amount of money spent to sell product or services. Includes advertising materials, promotions, public relations, and other expenses like salaries and travel.
Marketing/Sales Cost
Cost of running the business that does not lead to the generation of profit. Examples are accounting and legal expenses, administrative salaries, insurance, property taxes, rent, and utilities.
Overhead Cost
The value of funds in accounts or tangible machinery/production equipment.
Capital
The trust that allows one party to provide money or resources to another party where that the second party does not reimburse the first party immediately.
Credit
A risk or daring journey or undertaking.
Venture
The annual cost to you of your insurance.
Premium
The amount you will pay before the insurance company reimburses you for a loss.
Deductibles
Is a short, simple document that provides a clear summary of a proposed business venture.
Business Concept
Similar to an elevator speech, a concise, compelling description of the proposed venture.
Vision Description
A person or entity that may be interested in providing capital for your business venture.
Prospective Investors
A “hockey stick” projection is a revenue growth line sort of looks like a hockey stick - flat at first, and then a straight line up.
Hockey Stick Projections
Product or services that experience regular and predictable changes that recur every calendar year.
Seasonality
How your customers and competitors responding to your marketing and selling strategies.
Competitive Reactions
The ability to go beyond your customers into markets that have not been in your typical plan. For example, a restaurant offering private catering or a restaurant selling their signature desserts through local grocery stores.
Expansion Markets
An idea that is accepted as true or as certain to happen without proof.
Assumptions
A separate section in your Pro Forma that allows you to make varying assumptions that will help you avoid introducing errors in calculation into the pro forma spreadsheet. It allows you to determine which assumptions have the greatest impact on the bottom line.
Sensitivity Analysis
