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.
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.
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.
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.
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.
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.
A Profit and Loss Statement is a financial document that summarizes your business’ revenues, costs and expenses.
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.
Quality Assurance is a system or process that is used to determine if a product or service meets industry standards.
Research and Development are activities that companies take to innovate and introduce new products and services.
Return on Investment is a measurement that is used to evaluate how much profit you will receive from an investment.
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.
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.
Year to Date refers to the period of time from January 1st of the current calendar year up to the current date.