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6 Terms to Understand Before Starting a Business
6 Terms to Understand Before Starting a BusinessKnow these terms to make smart choices when starting your business.
6 Terms to Understand Before Starting a BusinessROI (Return on Investment): Profitability relative to investment cost.
6 Terms to Understand Before Starting a BusinessROAS (Return on Advertising Spend): Revenue generated per unit spent on ads.
6 Terms to Understand Before Starting a BusinessWorking Capital: Current assets minus current liabilities.
6 Terms to Understand Before Starting a BusinessProfit Margin: Percentage of revenue that is profit.
6 Terms to Understand Before Starting a BusinessCOGS (Cost of Goods Sold): Direct costs of producing goods sold.
6 Terms to Understand Before Starting a BusinessEBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Earnings from core operations before deductions.