Glossary
Business management glossary
Plain-language definitions for strategy, finance, and operations terms.
Glossary
Business management
10 terms
B
6 terms
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The way a company creates value, delivers it to customers, and captures revenue and profit. A business model defines the target audience, the offering, the revenue streams, and the cost structure that make the enterprise viable.
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A structured document outlining a company's goals, strategy, market, financials, and execution roadmap. It serves as both an internal guide for leadership and a tool for securing investment, partnerships, or funding.
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The sales level where total revenue equals total costs, resulting in zero profit or loss. Knowing the break-even point helps businesses set pricing strategies, sales targets, and understand the minimum volume needed to cover fixed and variable costs.
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The pace at which a company uses cash, typically measured monthly for startups. Tracking burn rate is critical for understanding how long the business can operate before requiring additional funding or reaching profitability.
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The difference between planned and actual figures, used to analyze performance. A favorable variance means spending was below budget or revenue exceeded expectations; an unfavorable one signals the need for corrective action.
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Comparing business processes or metrics against industry standards or best-in-class peers to identify gaps. Benchmarking highlights areas where performance lags and provides concrete targets for improvement initiatives.
Finance & budgeting
3 terms
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A financial plan that estimates expected revenue and spending for a given period. Budgets provide spending guardrails across departments and serve as a baseline for variance analysis throughout the fiscal year.
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Review of differences between budgeted and actuals to understand drivers and corrective actions. Regular variance analysis helps finance teams spot overspends early, reallocate resources, and improve the accuracy of future forecasts.
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Teams build detailed budgets that are rolled up to form the company plan. Bottom-up budgeting captures operational realities and increases buy-in, though it can be slower and may lead to inflated requests.
HR tech
1 terms
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Systems and processes to manage enrollment, eligibility, and costs for employee benefits. Benefits administration platforms automate open enrollment, track dependent eligibility, and help employees understand and compare their options.
