Are you an entrepreneur?
Whether you own a business now or might one day, you need today’s phrases!
Listen in to learn important business terms used often by business owners.
Use this vocabulary to communicate more confidently with clients, partners, and investors.
Do you have a business?
Michelle asks Lindsay if she had a hard time adjusting to becoming a business owner.
Lindsay shares that she has been a business owner for years now and it can be hard to remember the feeling of adjustment.
She mentions that she may not have struggled as much as expected since she was already in the business owner mindset.
In her early 20s it felt like she already had the spirit of entrepreneurship.
Michelle mentioned that her family now has a business.
Her husband has been running it and she helps.
It can be overwhelming and it can be challenging to keep up with everything.
Even if you don’t own a business, today’s episode is relevant to everyone.
Lindsay and Michelle will also share vocabulary to talk about finances.
Business owner vocabulary
Today, Lindsay and Michelle will go over some key terms dealing with finances that are really useful for businesses.
These terms are also good to use if you do or don’t own a business.
Finances are something everyone can talk about.
#1: Overhead
This refers to how much you have to spend.
This can be expenses in relation to staff, rent, loans, marketing, and other operational expenses.
These usually are things needed to keep the business running.
Example:
Our overhead isn’t that high yet because we are working remotely, but once we get a space that will change.
#2: Cash Flow
This refers to money going in and out.
It’s a combination of what you earn and what you spend.
It encompasses all forms of money and not just actual cash.
Example:
We need to check our cash flow because we have noticed we didn’t profit as much this month and we need to figure out why.
#3: Budget
This is a noun to refer to how much you can spend.
As a verb, this means to make those decisions or plan for how money is spent.
Examples:
We need to make sure to budget for the CE courses for the staff.
What is our budget for the end of year party?
#4: Break even
Some would use ‘break even point.’
This is when the profit is just enough to cover the overhead costs of the business.
Example:
I can’t believe we finally broke even!
We hit our break even point in March but we still need to profit more.
#5: Cost per customer
This is the calculation for how much it costs to obtain a customer.
This is a marketing term.
It is used to see if the expense for marketing your product or service is worth it.
Example:
Our cost per customer has been decreasing, which means word of mouth is starting to make a huge difference for us.
Have we figured out our cost per customer? That would help us make decisions.
Roleplay
Here is a roleplay from Lindsay and Michelle using the vocabulary shared in today’s episode.
This will help you better understand how you can use these phrases and terms in a conversation.
In this scenario, Lindsay and Michelle own a small business and are going over quarterly numbers.
Michelle: Okay, so…it looks like we did break even this quarter, so that’s good…I’d just like to see some profit
Lindsay: Yeah. I think it’s tough because our overhead is so high.
Michelle: I think we have to budget for seasonal changes as well.
Lindsay: True. I looked over the cash flow statements and everything looks correct.
Michelle: Yeah, I saw that, thanks. And has our cost per customer decreased?
Lindsay: Yes, that’s a huge win for this quarter.
Michelle: Excellent!
You can check out similar episodes with related vocabulary.
Don’t miss episode BE 444: How Did You Find This Episode?
Takeaway
Whether you’re running your own company or just getting familiar with the world of business, it is vital that you understand terms like overhead, cash flow, budget, break even, and cost per customer.
These can help you communicate more confidently and make smarter financial decisions in any setting.
Whether you’re a seasoned entrepreneur, just stepping into a supporting role in a family business, or simply looking to better understand how businesses operate, learning key financial terms can make a big difference.
Use the vocabulary shared in today’s episode, not just for referring to your business but also for everyday financial conversations.
By understanding and using this language, you’ll feel more confident when discussing business performance, making decisions, or even just keeping up in conversations with clients, partners, or colleagues.
Tune in to strengthen your business vocabulary and take one more step toward sounding like a pro in any professional setting.
What are other business terms you hear a lot?
We’d love to hear you share one in the comments below.
