Entrepreneurship Vocabulary
Financial Plan-The financial plan present the forecasts for the future of the business. It also explains the
assumptions made when calculating your forecast figures. (what you think you will make) Usually, this
information is in the form of financial statements. This part of the business plan show that the new business
will be financially healthy.
Business Permit- a license from the city or county in which you plan to operate your business allowing you to
operate your business.
OSHA- Occupational Safety and Health Administration – department of the US government with the
responsibility to ensure safety and healthful work environments
CPSA- Consumer Product Safety Act – to protect the public against unreasonable risks of injury associated
with consumer products
FDA- Food and Drug Administration – assures the safety and effectiveness of a range of products
Business plan- is a document that describes a new business. It explains to lenders and investors why the new
business deserves financial support. Parts of the business plan may include:
1. Executive summary- brief summary of business plan. [so potential banks or lenders can decide if
they want to “maybe” lend you money] if they like the executive summary they will then read the whole
business plan
2. Product/service plan- the product or service you are offering [chocolate chip cookies]
3. Management team plan-qualifications you have, with your employees, to market your product
[foods II class students]
4. Industry/market analysis-your research into the market, analyze your customers, competition and
industry, info about location of business, economy of the area and demographics (boys, girls, $ they make,
education, where they live, who they live with, etc. depends on what you want to sell) [Southside High School
faculty and parents, students after school]
5. Operational plan-how, when, where you are going to make your product, time it takes, cost
involved, etc.
6. Organizational plan-what is the goal of the business, legal form of the business, employment polices
(who gets fired when) [to make a small profit to continue to be able to buy food, student gets a grade]
7. Marketing plan- advertising, who will be targeted to buy the product, pricing, company image,
marketing budget, how will you reach the customer
8. Financial plan- predictions of success, how much $ you plan to make
9. Growth plan- how the business will expand in the future
Income statement- a financial report that show how much a business has earned or lost during a year
Cash flow statement- describes the flow of cash into (estimated sales) and out (estimated operating expenses)
Of the business
Mission statement- a philosophical statement describing your business
Niche market- is simply a small segment of the market, usually based on customer needs that you’ve
discovered in your market research
Consumer survey- a questionnaire that you give to the people who might want to buy your product, asking
them questions about your product i.e. Do you like cookies?
Customer profile- description of the people who might buy your product
Market survey- process of investigating the areas of the market [is there anyone else making chocolate chip
cookies]
Business concept- an idea for a new business that can be tested
Policy statement- general statement of intent about how to run your business ( they simplify day-today
management so you don’t have to make the same decisions over and over again. A business may have a policy
about working hours or overtime pay) [Rules in the classroom]
Feasibility – if an idea for a new business is practical---are there customers who want what you have to offer?,
what conditions must be present for you to decide to go forward with the business, is there enough demand for
your product or service
Prototype- an example of what you might want to sell
Entrepreneur- a person who starts a business for themselves
Quality control- the process of making sure that the goods or services produced meet the standards set for them
[Sample some of those cookies!]
Break-even point- the exact time that you start to make a profit
Balance sheet- is a financial statement that tells you what your business is worth at any given time.
The 5 P’s of Business:
1. Product: how you will design and package your product/service
2. Price: how you will price your product/service
3. Place: how products (and related services) are distributed to the consumer
4. Promotion: what media and marketing methods you will use to generate awareness and interest
about your product/service; include examples of your promotional materials (brochures, print
ads, copy for radio ads, calendar of events for special/regular promotions)
5. People: who will be responsible for marketing your product/service?