Business Terms

What does Self-Published Mean?

Self-publishing means an individual takes the role of a publisher and is responsible for all the necessary steps involved in bringing a book to print, and to market for sale. This does not mean the individual is personally responsible for executing each step in the process, but is responsible for the overall project and its completion. The steps in self-publishing typically … [Read more...]

What is ROI, or Return on Investment?

ROI is the measure of an investment’s efficiency. Simply put, it’s a calculation that gives a comparable gauge of an investment’s profitability; ROI is especially useful in comparing two or more investments, is easily calculated, and it can be applied to a variety of investments. ROI = (Gain from investment - Cost of investment) / Cost of investment If a business finds … [Read more...]

What is Sales, and How Is It Different from Marketing?

Sales is any type of interpersonal communication, usually one-on-one, that leads to the close of a sale, or a signed contract. Most often sales are the interactions with prospects or leads, which are the direct product of marketing. The strategy behind sales is to “push” with a concentration on short-term results. Successful salesman have the ability to communicate the “what” … [Read more...]

What is a Brand, and What Does Branding Mean?

A brand is the name, symbol or design that differentiates a product or service from others like it. Your brand should convey to your customers who you are, what you stand for and what you hope to achieve. Most importantly, your brand conveys that unique three-fold message in a way that differentiates your company from your competitors. Branding is the tactical execution of that … [Read more...]

What is a Sales Commission?

A sales commission is the amount of money that is gained by a salesperson based on the amount of sales they have achieved. A sales commission could be a flat amount per sale or a percentage of total sales for a period of time. It’s common for a salesperson to receive a sales commission in addition to their yearly base salary. Example: If a salesperson was to receive a 10% … [Read more...]

What is a Stakeholder?

A stakeholder is any party with an interest in a business enterprise or project. Stakeholders can be in external or internal proximity to the organization. Typical business stakeholders are investors, owners, managers, employees, suppliers, and customers. A stakeholder can affect a business, be affected by a business, or both affect and be affected by a business. … [Read more...]

What is a Vision Statement, and How is it Different Than a Mission Statement?

A vision statement, which is different from a mission statement, defines the purpose and objectives of a company for the future. A vision statement explains what the company hopes to do going forward, when does the company want to do it, and how does the company accomplish its future goals. Its focus is on future hope with a clear objective. The main purpose of a vision … [Read more...]

What is Revenue?

Revenue is the amount of money a company brings in from any of its business activities. Revenue can be accounted for in several different ways and can also be divided into “operating revenue” or “non-operating revenue”. Operating revenue is the revenue generated from a company’s core business, while non-operating revenue would be generated from the sale of asset or investment … [Read more...]

What is Marketing, and How Is It Different from Sales?

Marketing is the integrated strategic approach to identifying, reaching and preparing prospects or leads for the sales process. Marketing strategies can include: market analysis, public relations, advertising, pricing strategies, and customer service. The strategy behind marketing is to “pull” with a concentration on long-term results. Successful marketing strategies match … [Read more...]

What Does the Term “Mutually Exclusive” Mean

The term “mutually exclusive” is a term used to describe two events that cannot both be true to occur. A coin flip is an example of a mutually exclusive event. A flipped coin cannot read both heads and tails at the same time. The probability of a coin flip reading both heads and tails would be zero, but the probability of a coin flip reading heads or tails would be the sum of … [Read more...]