The Language of Business

Like any group, business has its own language. Each industry has its own jargon but this article is going to explore common abbreviations, vocabulary and phrases used in all types of business.

Jargon- Words or phrases used by a particular profession, group or industry

The report was full of technical jargon that made it hard for new employees to understand

Business Jargon

Shareholder- A person or company that owns part of the business

Stakeholder- A person or group that has interest in (or is affected by) a business or project

We must remember it isn't just our employees and shareholders, this project affects the local community they are stakeholders too

Put a pin in it- To stop talking about something for now

Circle back- To return to talking about something later

These two phrases are often used together.

We should put a pin in that for now and circle back to it when we have more information

Touch base- To give or receive a short update on progress

Touch base at the end of the week and let me know how the project is going

Loop ___ in- To include someone in a conversation

Loop management in before sending the proposal to the client

B2B- Business to business

B2C- Business to customer

B2G- Business to government

Google sells Pixel phones and YouTube Premium to individuals (B2C)
Google offers Workspace, cloud services and advertisement tools to businesses (B2B)
Google works with governments on cloud, mapping and data solutions (B2G)

Money Talks

Asset- Adds value

Liability- Loses value

Your house has risen 20% in value, it's a great asset but your car is losing money every year, it's a big liability

These phrases are most often used when talking about money but they can also be used to refer to other things.

He was an asset to the company when he first started but his heavy drinking has made him a liability

ROI- Return on investment, the benefits received from an investment. Often used when talking about money but not always

I think the ROI is great, we didn't make much money but our brand is now much better known

Expenses- Money the company pays out: salaries, build and development costs, advertising etc.

Revenue- Money that the company brings in from sales, consulting etc.

Our expenses are higher than our revenue, we're losing money

Profit- Revenue minus expenses

Margin- Profit as a percentage

It costs us $70 to make and we sell it for $100, $30 profit. In this industry a 30% margin is great

Equity- Assets minus liabilities

Your house is worth $200,000 with a $150,000 mortgage. Your equity is $50,000.

This articles only scratches the surface. Management, marketing and project management all have jargon of their own. If you’d like to learn more consider booking a lesson to focus on exactly what you want to learn.

Scratch the surface- To understand a small part of a much bigger subject

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