How to Use this Information?

This site is shopped full of articles, business tips, and even homework to help you start your business. Please take the tests, ask questions, and research our information. Use the resources and business blogs on this site, to help you move forward in your business plan.

Definitions You Should Know?

Here are a list of definitions that every business person or entrepreneur should know:

	Annual Receipts - Annual sales or revenues recorded for businesses within a particular industry.
	Establishments - The number of businesses opened and operating in a business sector during the year  the data was collected.
	Annual Payroll - The total payroll paid by businesses opened and operating in a business sector during the year the data was collected.
	Employees - The number of full and part-time employees working at business in an industry sector the year the data was collected.
	Risk - The quantifiable likelihood of loss or uncertainty of expected returns. Examples: currency risk, inflation risk, principal risk, country risk, economic risk, mortgage risk, liquidity risk, market risk, opportunity risk, income risk, interest rate risk, prepayment risk, credit risk, unsystematic risk, counterparty risk, purchasing-power risk, event risk, supplier risk, etc.
	Reward - The yield from an investment which is proportional to risk.
	Stakeholder's Returns   - The yield from an investment expressed as a percentage of the investment for each entity of an organization's value chain (suppliers, customers, shareholders, etc.).
	Risk Management - Practices which involves the identification, analysis, assessment, control, avoidance, minimization, or elimination of unacceptable risks while acting upon acceptable risk to maximize, create, or preserve value.
	Reputation - This value driver is a measure of stakeholder goodwill. It is measured in terms of growth rate, health, and awareness of the corporate image, mission, branding, etc.
	Human Capital - This value driver is an assessment of an organizations human resources. It is measured in terms of management's experience, ability, board and career development.
	Intellectual Property (IP) - This value driver is an assessment of the depth and breath of the intellectual property of an organization. It is measured in terms of Trademarks, Patents, Trade Secrets, and processes of knowledge capture.
	Customer Base - This value driver is an assessment of the customer base in terms of growth, sentiment, diversity, liquidity, and age of base.
	Product Integration - This value driver is an assessment of an organization's product and services portfolio. It is measured in terms of vertical & horizontal alignment, manufacturing process dependencies, and ROI.
	GA Efficiency - This value driver is an assessment of the general and administrative functions of an organization. It's measured in terms of staffing efficiency and expertise, work space allocation, etc.
	Barriers to Entry - This value driver is assessed in terms of competition, macro trends, competencies, and other transaction barriers.
	Recurring Revenue - This value driver is assessed in terms of sales effort, warranty expense, after sales support, and probability of repeat sales
	Distribution - This value driver is assessed in terms of the variety of channels, access to channels, channel discounting, take back liability and sales costs.
	Sales & Marketing Efficiency - This value driver is assessed in terms of Return on Investment (ROI), age of models, forecast accuracy, scalability.
	Gross Margin - This value driver is assessed in terms of accuracy of Cost of Goods Sold (COGS), Work in Progress (WIP) to waste ratios, market pricing.
	Asset Rating - This value driver is assessed in terms of aging, depreciation, utility, and market value.
	Strategic Risk - This risk includes uncertainty in strategic planning, strategic alignment, corporate monitoring, and resource allocation.
	Culture Risk - This risk includes uncertainty in hiring, human resources, work environment, and organizational learning.
	Asset Risk - This risk includes uncertainty in market value and lifecycle planning for physical assets, utilization, inventory turns and valuation, and intellectual property.
	Market Risk - This risk includes uncertainty in monetary policy, interest rate and exchange rate fluctuations.
	Stakeholder Risk - This risk includes uncertainty in shareholder, business partner, customer, government, and supplier affinity and pressure.
	Reporting Risk - This risk includes uncertainty in complying with taxation policy, accounting rules, and laws in regulatory compliance.
	Market Structure Risk - This risk includes uncertainty in competition, macro trends, customer behavior, foreign and domestic governments, and in conducting transactions.
	Legal Risk - This risk includes uncertainty in liabilities, Warranties, Contracts, and Regulations.
	System Risk - This risk includes uncertainty in network architecture, software (selection, maintenance, support and performance), and hardware (selection, maintenance, support and performance).
	Process Risk - This risk includes uncertainty in product or service development, fulfillment & delivery, Marketing & Selling, and Support.
	Liquidity Risk - This risk includes uncertainty in collectability, cash management, hedging, funding, and capital structure.

For more information check out http://galliumgroup.com

As iron sharpens iron, so one man sharpens another. (Proverbs 27:17)