You don't need to know all of the terminology before you start our Enterprise programme - it's something we cover in our four-day interactive workshop which takes you through the nuts and bolts of starting and running your own business.
And, if you do have questions afterwards, you can always ask our friendly dedicated mentors who will support you every step of the way.
But, because we like to be helpful, we've written it down for you too.
- Book-keeping: Weekly or monthly record-keeping of money that comes in and goes out of the business
- Business expenses: Money spent on business activities during an accounting period (usually 1 year from the date you start trading and can be aligned to the tax year)
- Cash flow: Predicted cash flow shows a forecast of the money that will come in and go out of the business. Actual cash flow is a record of what money actually comes in and out of the business over a period
- Direct costs: Costs that can be traced directly to the production of a specific unit of your product e.g. materials used, production labour, certain production expenses. Also known as variable costs
- Gross profit margin: The difference between sales and the cost of goods or services sold. Also known as gross margin
- Gross profit: Total income/revenue from a business’s sales minus the direct costs of making the sales (this does not include a business’s overheads or running costs)
- Indirect costs: Costs that cannot be traced directly to the production of a unit of your product e.g. property costs, administration and selling costs. Also known as fixed costs, running costs or overheads.
- Net profit: A business’s total income minus its total costs
- Profit: The figure representing the amount by which sales are more than expenses
- Revenue: The total sales income of the organisation for a period, regardless of whether or not the customer has paid. Also known as sales revenue or turnover