There are lots of terms and words about business that you may hear and your head start to feel very light and your feet wobbly. Not to worry, here are seven words used in the world of business that you can add to your vocabulary.

Entrepreneurship

This is the process of starting up a new business. It can also mean the study of how businesses are started or formed. A person that has a business or is in the process of starting one is an entrepreneur. It is also a course studied in the university. Entrepreneurship is not as easy as it may look. If you intend to become one, you have to be ready to put in the work, be committed and ready to tackle obstacles as they come to be successful in the field of business.

Capital

Capital is the amount of money that you use to start up your business. This is the money you invest into your business. Every business needs a certain amount of money to grease its wheels and get it going. Your capital might be huge or small depending on the size of the business.

Profits

Profits are the gains you make in business. It is the added interest you make when you sell your products or services. For example, if you spent 4000 naira to buy a bottle of perfume (capital) and you sell it for 7500 naira (sales price), you have made a profit of 3500 naira.

Losses

Losses are the opposite of profits. When the sales price of goods or of services is less than the price used to attain it (capital), a loss has been incurred. From the example above, if the perfume sells for 3500 naira, there has been a loss of 500 naira. As a business owner, your aim should be to maximize profits and minimize losses.

Retail

This is the sales of goods or services to people for their individual use. Businesses that sell in this form are retailers. They do not sell in bulk or with bulk discounted prices, rather they breakdown goods and sell them in small bits to the customers. The end user of these products are the buyers.

Wholesale

Wholesale is a type of trade where customers buy in bulk and sell in bulk quantities. Wholesalers buy directly from manufacturers or suppliers at lesser prices and then proceed to sell to retailers at affordable prices. The retailers then sell to consumers. The end user for a wholesaler are the retailers.

Loan

Loan is the money borrowed from third parties to finance your business. They are usually paid back with interest after a period of time. These third parties could be financial institutions like banks or they could be family and friends. Loans really aid business start-ups, small businesses and even large businesses. However, be conscious of the size and interest payable when collecting a loan. If your business doesn’t have strong backings, you may not be able to pay back in due time and this rings trouble for you and your business.

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These are some commonly used words related to business. More words for your vocabulary coming up in a part two article. 😁