Common Business Terms in ASL
Business jargon relies a lot on acronyms and abbreviations. We’re building a list of these terms in ASL. Below are several definitions connected to business metrics, contracts, and operations.
This list will continue to grow, so if you have any terms you’d like added or clarified contact us today and we will put together an explanation.
BCP
Business Continuity Plan
A Business Continuity Plan is a document that outlines how your business will operate if there is an unplanned disruption or emergency like the owner passed away or a fire happened.
B2B
Business to Business
B2B refers to a situation where business is conducted between two companies, not between a company and an individual consumer.
B2C
Business to Consumer
Business to Consumer is a transaction where a business sells its products or services directly to individual consumers.
CRM
Customer Relationship Management
A Customer Relationship Management platform is a tool that lets you store customer and prospective customer information, identify sales opportunities, record purchases, and manage marketing campaigns.
CTA
Call To Action
CTA is a marketing term that refers to the action a marketer wants its audience to take. Common CTA’s include “buy now,” “subscribe,” or “share.”
KPI
Key Performance Indicator
A Key Performance Indicator is a measurable value that shows how well your business is achieving crucial business objectives. An example: you set a goal to get $100k in revenue and you develop steps to reach your goal.
LOI
Letter of Intent
A Letter of Intent is a document that outlines the major terms of an upcoming deal or partnership. (Ex: We’ll partner with you, we’ll invest into you.) This is an agreement to the potential scope of work that the parties will begin in the future. This is not highly detailed – the finer details will be ironed out when the parties develop an SOW for each item listed herein.
MOU
Memorandum of Understanding
A Memorandum of Understanding is an agreement between multiple parties. It is not a legally binding contract but is usually the starting point of a formal business relationship.
P & L
Profit and Loss Statement
A Profit and Loss Statement is a financial document that summarizes your business’ revenues, costs and expenses.
PSA
Professional Services Agreement
A Professional Services Agreement is a contract between two parties for a period of time, for example, one year. A PSA specifies general terms, but is not project-based.
QA
Quality Assurance
Quality Assurance is a system or process that is used to determine if a product or service meets industry standards.
R & D
Research and Development
Research and Development are activities that companies take to innovate and introduce new products and services.
ROI
Return on Investment
Return on Investment is a measurement that is used to evaluate how much profit you will receive from an investment.
SEO
Search Engine Optimizations
SEO is a process used to help your website show up when people search topics related to your company on search engines, like Google. Search engines will review your website for words, links, content, and other factors like how fast your pages load, to determine what your website is about and whether it’s credible. They will then use that information to decide how your website will show up in search.
SOP
Standard Operating Procedures
Standard Operating Procedures are a documented set of instructions that describe step-by-step processes to complete tasks in line with industry or business standards.
SOW
Statement of Work
A Statement of Work means a binding agreement for both parties. An SOW defines project specifics such as the scope of work being provided, the cost of the project, and timelines. If both parties agree, we’ll sign the SOW.
YTD
Year to Date
Year to Date refers to the period of time from January 1st of the current calendar year up to the current date.
