Course Catalog / BMU 170 / Glossary
Glossary: BMU 170 Start Your Business on a Budget
- alternative
- What people do about the problem today, without you.
- break even point
- The number of sales where money in equals money out.
- cost per sale
- What each sale costs you, like supplies and gas. Also called variable cost.
- customer
- The person or group who pays you.
- DBA
- Doing business as. A name you use that is not your legal name.
- EIN
- Employer identification number. A free federal tax ID from the IRS.
- fixed cost
- A cost you pay each month no matter how many sales you make, like a phone plan.
- idea test
- Five questions that show whether an idea is worth testing with real people.
- lean plan
- A short business plan, often one page, that you update as you learn.
- LLC
- Limited liability company. A state filing that can protect personal assets in most cases.
- measurable goal
- A goal you can count, with a date.
- mentor
- An experienced person who gives you advice for free.
- offer
- What you sell, to whom, and for how much.
- open question
- A question that cannot be answered with yes or no.
- past behavior
- What a person actually did, such as the last time they paid for help.
- pitch
- Trying to sell. Save it for later.
- problem
- Something that costs a person time, money, or stress.
- profit
- What is left after all costs. It can be zero or less.
- referral
- A customer telling someone else about you.
- SBDC
- Small Business Development Center. Offers free or low cost counseling.
- signal
- A clue about demand. Strong signals cost the person something, like time or a deposit.
- sole proprietorship
- A business owned by one person that is not a separate legal entity. It forms automatically.
- substantiation
- Proof you have before you make a claim in an ad.
- testimonial
- A customer's words about you, used in your marketing.
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