Word List

Contingencies – We have to plan for scenarios that might never occur! It’s important to plan for back-up solutions to potential problems. These plans are called contingencies.

Competitive Advantage – A unique feature or strategy that differentiates a business from competitors, improving market position.

Depreciation – To deduct from taxable income a portion of the original cost of (a business asset) over several years as the value of the asset decreases.

Elevator Pitch – A concise (one-minute) summary of a business idea designed to quickly capture interest.

Emotional Intelligence (EQ) – The ability to understand and manage emotions, critical for leadership, teamwork, and conflict resolution.

Entrepreneurial Mindset – A way of thinking that embraces challenges, creativity, resilience, and adaptability in business.

Executive Summary – A short version of all the information presented in the rest of the document made into short, easy to read sentences that fits on one page or less.

Failure Resumé – A reflective exercise documenting past failures and lessons learned to improve future strategies.

Forecasting – Predicting future financial performance based on historical data and market trends.

Growth Mindset – The belief that intelligence and abilities can be developed through effort and learning.

Holistic Entrepreneurship – Balancing business success with personal well-being, ethical practices, and community impact.

Market Validation – Assessing demand for a product/service by testing it with potential customers and analyzing market data.

Monetizing Hobbies – Turning personal interests and activities into income-generating businesses.
Niche Market – A specialized segment of a broader market with unique needs or preferences.

Porter’s Five Forces – A framework for analyzing industry competition: competitive rivalry, new entrants, supplier power, buyer power, and substitute products.

Scarcity – a shortage in quantity or number compared with the demand; not plentiful nor abundant; very little.

Side Hustle – A secondary business or project pursued alongside a primary job to generate additional income.

SMART Goals – Goals that are Specific, Measurable, Achievable, Relevant, and Time-bound.

Social Entrepreneurship – A business model focused on addressing social and environmental issues through innovation.

SWOT Analysis – A strategic tool for identifying Strengths, Weaknesses, Opportunities, and Threats to a business.

Target Market – A specific group of customers a business aims to serve, defined by demographics, interests, and needs.

Trauma-Informed Pitching – Approaching investor conversations with sensitivity to personal histories and power dynamics.

Value Proposition – A clear statement explaining how a product/service solves a problem or improves customers’ lives.

Financial and legal terms

BOIR (Beneficial Ownership Information Reporting) – A regulation requiring businesses to disclose individuals who own or control the company to prevent fraud.

Bootstrapping – Starting and growing a business using personal savings or revenue, without external funding.

Cash Flow Statement – A financial document tracking cash inflows and outflows to assess liquidity and operational health.

Creditworthiness – A measure of financial reliability in repaying debts, influencing access to loans or credit.

Debt Financing – Raising capital through loans that must be repaid with interest.

EBITDA – Earnings Before Interest, Taxes, Depreciation, and Amortization, used to assess profitability.

EIN (Employer Identification Number) – A federal tax ID required for businesses with employees.

Equity Financing – Raising capital by selling shares of ownership in a business.

Financial Statements – Reports summarizing a business’s financial activities, including the Income Statement, Balance Sheet, and Cash Flow Statement.

General Liability Insurance – Insurance covering lawsuits related to injuries, property damage, or negligence.

Gross Profit Margin – Formula: (Revenue – Cost of Goods Sold) / Revenue × 100—measures production efficiency.

Microloan – A small loan (typically under $50,000) designed to help startups or small businesses access early-stage funding.

Revenue Streams – Various sources of income for a business, such as product sales, subscriptions or partnerships.

Risk Management – The process of identifying, assessing, and mitigating risks that could impact a business’s success.

UBI (Unified Business Identifier) – A Washington State registration number for tax and licensing purposes.

Tools and resources 

Association of Washington Business (AWB) Competitiveness Redbook – An AWB report analyzing economic trends and business competitiveness.

Census Business Builder – A U.S. Census Bureau tool for market research and demographic analysis.

Circular Economy – An economic system focused on minimizing waste by reusing, repairing, and recycling materials.

Competitive Rivalry – The intensity of competition among existing businesses, potentially leading to price wars and reduced profitability.

Direct Competitors – Businesses offering identical or very similar products/services to the same target market.

Google Trends – A tool tracking search interest over time to identify market trends.

Indirect Competitors – Businesses offering different products/services that satisfy the same customer need.

O*NET Online (Website) – A federal database providing occupational data (e.g., job trends, skills required).

OSHA (Occupational Safety and Health Administration) – A federal agency ensuring safe working conditions.

Primary Research – Collecting firsthand data through surveys, interviews, or focus groups.

Regenerative Entrepreneurship – A business approach focused on restoring and enhancing social, environmental, and economic systems.

Resilience – The ability to adapt and recover from setbacks and business challenges.

Resilient Economy – An economy capable of adapting and recovering from disruptions while maintaining stability.

SCORE Website – A nonprofit offering free mentorship and templates for business planning. 

Scarcity – A state of limited resources affecting supply, demand, and market conditions.

Secondary Research – Utilizing existing data sources, such as industry reports and market analyses.

Threat of New Entrants – The risk of increased competition due to new businesses entering the industry.

Threat of Substitutes – The risk of customers switching to alternative products/services, impacting market share.

Time Audit – Tracking how time is spent to optimize productivity and ensure alignment with business priorities.

Washington State Department of Commerce (WA Commerce) My Startup 365 – A Washington State resource for business planning, funding, and licensing.

Acronyms 

BLS – Bureau of Labor Statistics.

CDFI – Community Development Financial Institution.

LLC – Limited Liability Company.

SBDC – Small Business Development Center.

WORKBOOK