Glossary

The vocabulary of running a business, explained in plain language — with what each term means in practice for an SMB.

• What is an ERP?ERP stands for Enterprise Resource Planning: software that runs finance, sales and records in one system. What it means in practice for an SMB.
• What is a CRM?CRM stands for Customer Relationship Management: the system that organizes contacts, deals and follow-ups. What it means for a small business.
• What is accounts receivable?Accounts receivable is the money customers owe you for delivered work. Definition, examples and how SMBs keep it under control.
• What is accounts payable?Accounts payable is what your business owes suppliers. Definition, why it matters for cash flow, and how to manage it without spreadsheets.
• What is cash flow?Cash flow is the movement of money in and out of your business. Why it kills more companies than lack of profit, and how to track it.
• What is a sales pipeline?A sales pipeline is the visual map of your deals by stage. Definition, standard stages and how small teams use one without bureaucracy.
• What is working capital?Working capital is the money that keeps operations running between paying costs and receiving revenue. Definition and how to protect it.
• What is churn?Churn is the rate at which customers stop buying from you. What it means for service SMBs and how organized follow-up reduces it.
• What is an invoice?An invoice is the formal request for payment for delivered goods or services. What it must contain and how SMBs manage invoices well.
• What is profit margin?Profit margin is the percentage of revenue left after costs. Formula, gross vs net margin, and how SMBs actually track it.
• What is the break-even point?Break-even is the revenue level where your business stops losing money. How to compute it and why every SMB should know theirs.
• What is an income statement (P&L)?The income statement (P&L) shows revenue, costs and profit over a period. How to read one and what SMB owners should look for.