Glossary
Business management glossary
Plain-language definitions for strategy, finance, and operations terms.
Glossary
Business management
13 terms
C
10 terms
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Spending on long-term assets like equipment or property that deliver value over time. CapEx is capitalized on the balance sheet and depreciated over the asset's useful life, affecting cash flow and tax planning.
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The movement of cash into and out of a business across operating, investing, and financing activities. Positive cash flow means the company generates more cash than it spends, which is essential for meeting obligations and funding growth.
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The average cost to acquire a new customer, including marketing and sales expenses. CAC is often compared against customer lifetime value (LTV) to assess whether growth spending is sustainable and profitable.
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Projected revenue a customer generates over the full relationship with the company. LTV helps businesses decide how much to invest in acquisition and retention, and a healthy LTV-to-CAC ratio is typically 3:1 or higher.
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The percentage of customers (logo churn) or recurring revenue (revenue churn) lost during a given period, typically measured monthly or annually. Reducing churn is often more cost-effective than acquiring new customers and is a key focus for subscription-based businesses.
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Adherence to external laws, industry regulations, and internal policies that govern business conduct, data handling, and reporting obligations. Non-compliance can result in fines, legal action, and reputational damage, making it a critical function in regulated industries.
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France's state platform for e-invoicing to the public sector (B2G) and upcoming B2B e-invoicing; operated by AIFE with structured formats like Factur-X, UBL, and CII. It validates invoices, provides processing status updates, and serves a routing role similar to FACe in Spain or Mercurius in Belgium.
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The discipline of preparing and supporting people through organizational changes. Effective change management uses structured communication, training, and stakeholder engagement to reduce resistance and accelerate adoption.
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A proactive, relationship-driven function that helps customers achieve their desired outcomes, driving adoption, retention, and expansion revenue. Customer success teams monitor health scores, intervene before issues escalate, and identify upsell opportunities.
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An ongoing effort to enhance processes, products, or services through incremental changes. Rooted in methodologies like Kaizen, continuous improvement relies on feedback loops, measurement, and small experiments to drive lasting gains.
Finance & budgeting
1 terms
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Process to evaluate and prioritize long-term investments like equipment or facilities. Capital budgeting techniques such as NPV, IRR, and payback period help decision-makers compare projects and allocate limited funds effectively.
HR tech
1 terms
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Comparing pay bands to market data to set competitive and equitable salaries. Regular benchmarking helps organizations attract talent, reduce unwanted turnover, and maintain internal pay equity across roles and geographies.
Systems
1 terms
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Customer Relationship Management; software for tracking leads, deals, and customer interactions across the lifecycle. A CRM provides sales, marketing, and support teams with a shared view of each customer, improving collaboration and conversion rates.
