Listed below in alphabetical order is a selection of words and phrases defined in the context of this assessment.

7 Ps

Basic 'Marketing Mix' (a combination of factors that can be controlled by a business to influence consumers to purchase its products) has 4 Ps, which are namely - Product, Price, Place and Promotion.

Nowadays it is commonly accepted that a more developed 7 Ps approach adds a much needed additional layer of depth to this 'Marketing Mix' with practical components and especially considering 'services'. The additional 3 Ps are People, Process and Physical Evidence.

Break-even analysis

A financial computation which indicates when the business model will be able to cover all of its expenses and begin to make a profit.

Business Canvas

A strategic management and lean startup template for developing new or documenting existing business models. It is a visual chart with elements describing a business or product's value proposition, infrastructure, customers, and finances.

Business model

An organization’s plan for successful operation of a business, with the end goal of making an income. It identifies the products or services the business will sell, details of financing, the target market it has identified, sources of revenue and the expenses it anticipates.

Business Plan

A formal and well-thought-out document containing business goals, the methods for attaining these goals, and the timeframe for achieving them. It describes the nature of the business, and provides background information on the organization, marketing plans, the organization's financial projections, and the strategies it intends to implement to achieve the stated targets.

Competitive Advantage

A condition or circumstance that puts an organization in a favorable or superior business position in comparison to the similar type of businesses or products in the market they are operating.

Corporate values

Company values, also known as corporate values or core values, are the fundamental beliefs upon which the business and its behavior are based. They are the guiding principles that the business or organization uses to manage its internal affairs as well as its relationship with customers.

Cost of sales

The direct costs of producing the goods/services sold by a business. This amount includes the cost of the materials and labor directly used to create the good. It excludes indirect expenses, such as distribution costs and sales force costs.

Depreciation

An accounting method of allocating the cost of a tangible or physical asset over its useful life or life expectancy. Depreciation represents how much of an asset's value has been used up.

Executive Summary

A summary section produced for business purposes. It summarizes a longer report or proposal or a group of related reports in such a way that readers can rapidly become acquainted with a large body of material without having to read it all.

Financial/Fiscal Year

The one-year period for which financial statements of an organization are prepared is referred to as the financial or fiscal year.

A financial year varies from countries/organizations for budgetary purposes. This means that while the financial year has 12 months, it does not necessarily start on 1 January and end on 31 December. It could, in certain instances be 1 April to 31 March or a different 12-month cycle.

Governing Board/Structure

The governing board is the supreme governing body of an NGO. Its decisions determine the organization's direction and policies, and eventually the organizational impact on the people it serves. The governing board of IPPF\’s Member Associations may also be known as National Board, National Council or Governing Council.
In relation to the above, the governance structure is how the organization’s governing hierarchy is set up.
E.g. President, Vice President, Secretary, Technical advisors, etc.

Gross Profit

The profit an enterprise makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Investment

A type of financing that is provided by firms or funds to small, early-stage, emerging businesses/enterprises that are deemed to have growth potential and with the goal on generating income (in this case - for the Association) and profit.

IRR – Internal Rate of Return

A metric used in budgeting to estimate the profitability of potential investments. It is a discount rate (rate of return used to calculate what future cash flows are worth today) that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Legal Structure

Defines the way a business or an enterprise is organized. Setting up a legal structure is one of the first decisions you'll make as a business.
e.g. Private limited company, Part of the NGO structure, Partnership, Outsourced, etc.

Market Research

The process of gathering, analyzing and interpreting information about the market for a product or service to be offered for sale in that market. It includes the analysis of the past, present and potential customers for this product or service; research into the characteristics, spending habits, location and needs of the business's target market, the industry as a whole, and the particular competitors in the market.

Marketing Strategy

Refers to a business's overall marketing game plan for reaching prospective consumers and turning them into customers of the products or services the business provides.

Member Association (MA) or Association

For the purpose of this glossary - refers to IPPF\’s fully accredited Member Associations, Associate Members and Collaborative Partners.

Mission Statement

Defines the company's business, its objectives and its approach to reach those objectives.

Net Profit

The profit that is a surplus amount after you subtract your total business expenses from your total revenue. In other words, it is a calculation that includes almost all financial transactions in your business.

NGO

A non-governmental organization (NGO) is a non-profit organization that is set up and operates independently of any government for a public benefit purpose.
e.g. IPPF, IPPF Member Associations, Red Cross, World Wildlife Fund

NPV – Net present value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Outside Services

The services a business takes from external vendors.

e.g. External researchers or data collectors, hiring a consultant or IT partner, etc.

Payback Period (PBP)

The duration it takes to recover the cost of an investment. Simply put, the payback period is the length of time an investment is fully recovered from the income of the business.

PESTLE Analysis

PESTLE analysis (Political, Economic, Social, Technological, Environmental and Legal factors) describes a framework of macro-environmental factors which affect an organization. It is a part of an external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro-environmental factors to be taken into consideration. It is a strategic tool for understanding market growth or decline, business position, potential and direction for operations.

Profit and Loss statement/report (P&L)

Aggregates the revenues, expenses, and profits or losses of a business/enterprise. This report portrays the financial results of a business for a specific period of time, such as for a month, quarter, or year. This is identical to an income statement.

Projection

An estimate or forecast of a future situation based on a study of present trends.

Social Enterprise – IPPF

IPPF recognizes social enterprise as the use of entrepreneurial methods to generate a surplus income, which is used to finance the social development, service delivery and humanitarian activities that enable the organization to fulfil its social mission.

Examples of social enterprise at IPPF: Sale of contraceptives, pharmacies, laboratories, restaurants, printing press, learner institutes, boarding house, etc.

Social Impact

The effect an organization's actions have on the well-being of the community.

Stakeholders

Those who are impacted by the organization and also who have an interest in the operation of the organization.

Start-up

The initial stage of a business venture/enterprise to develop a new product or service and bring it to the market.

Strategy

A plan of action designed to achieve a long-term or overall aim of an organization.

STP

Stands for Segmenting, Targeting and Positioning.

Segmenting (Market segmentation)

Dividing your customers into groups of people with common characteristics and needs.

Targeting

Evaluation of the potential and commercial attractiveness of each segment.

Positioning

How the product is designed to be perceived in the marketplace by the target market against its main competitors. In other words, it’s basically how consumers understand the product offering and how it differs from similar competitive offerings.

SWOT Analysis

Strengths, Weaknesses, Opportunities and Threats analysis is used to analyze the internal context (strengths and weaknesses) against the external environment (opportunities and threats) as relevant to an organization. It is then repeated at a future time, both to analyze how well it has capitalized on the strengths, dealt with the weaknesses, exploited the opportunities and minimized the threats in marketing the new product/service.

Target Customers

A specific group of people the business wants to reach with its marketing message. They are the potential consumer who are most likely to buy the products or services, and they are united by some common characteristics, like demographics and behaviors.

Regulations

Principles or rules which are meant to balance the interests of the business with those of the consumer/public as a whole.

Revenue

Total income of an organization earned during a certain period by selling their products and services.

Value

In this instance, refers to the current market value of the asset in question.

e.g. A value of a vehicle would depreciate (decrease) with time, while the value of land would most likely appreciate (increase).

Vision statement

Outlines what an organization would like to ultimately achieve and gives purpose to the existence of the organization. A good vision statement should be short, simple and specific to the business.

Working Capital

The funds available to meet the current and short-term obligations of the organization. Put simply, it is the money at hand to run the social enterprise/business for the next 6 - 12 months.

Do also read ‘What is a Business plan?’ and FAQs sections for further information and clarifications that would help you to prepare your business plan.