Glossary of Terms
I offer the following glossary of terms as a convenience to my readers of Sensible Small Business Ideas. It should help in the understanding of website content. The definitions are of my own creation, so they probably have some variance with standard dictionary definitions and those that you may be familiar with.
Terms are offered alphabetically for convenience.
- Client base – one or more customers that help keep you in business by regularly purchasing your products or services.
- Direct expenses - those costs directly associated with performing a service. Costs include travel, lodging, supplies, materials and subcontract support.
- Gross revenue - monies received for all products, services and direct expenses, before deducting overheads and other costs of doing business.
- Home (based) business - any business that you operate from your home, and does not require a storefront, warehouse, service center, storage area or other fixed facility outside your home.
- Loss - the (negative) difference between the cost of a service or product, and what your customers pay for the service or product. The net amount of money you're losing on each sale.
- Marketplace – a specific venue for multiple vendors to sell goods and services, and a general term to characterize the environment in which competitors vie for consumer dollars by offering products and services.
- Market sector – a specific portion of a broader marketplace that can be defined by certain characteristics of the products sold and services offered. Pickup trucks are a market sector of the broader automotive industry.
- Niche – a small well defined place in the market that demands specialized products and services to meet its needs. Harley Davidson serves a niche market of motorcycle enthusiasts who are looking for a model that is reminiscent of the early American made motorcycles. Rolex serves a very niche market of consumers who are focused on the prestige and jewelry quality of a watch, and less about knowing what time it is.
- Overhead - the general costs associated with running an enterprise such as rent, utilities, phone, cleaning service and so forth that can't be associated directly with a project or sale such that these become "direct costs" to your customers.
- Profit - the (positive) difference between the cost of a service or product, and what your customers pay for the service or product. The net amount of money you're gaining on each sale.
- Small business - any business that requires a storefront, office, warehouse, service center, storage area or other fixed facility outside your home.
Check back as I will update this glossary as I write the website, so new additions will appear often as a way of better understanding planning and implementation of small business ideas.
Done with Glossary, take me Home
The only business you'll really ever be part of is your own.
Wondering about what to do with your savings so inflation doesn't eat it up? Start your own enterprise. It's a good way to invest your capital and make it work for you. Who will be better at keeping an eye on your investment than you?