Small Business
‍Glossary

A comprehensive evaluation of all expenses involved in buying a business, including purchase price, due diligence costs, legal fees, and financing expenses. This analysis helps buyers determine the true cost of acquisition and calculate potential ROI before committing to a deal.

In an asset sale, a buyer purchases specific assets and sometimes liabilities from a company rather than buying the entire legal entity. This transaction type gives buyers more control over what they acquire, potentially reducing risk by leaving unwanted liabilities behind. For searchers, asset sales often provide cleaner deals with less historical baggage, though they require careful attention to asset transfer logistics, potential assignment issues with contracts, and possible tax implications that differ from stock purchases.

A document that outlines how a company will build and maintain its brand identity, including logo usage, messaging, visual elements, and customer touchpoints to create a consistent, memorable impression that differentiates it from competitors.

A framework that translates strategy into action through structured meetings, clear priorities, and measurable goals. It creates accountability by establishing rhythms for daily, weekly, monthly, and quarterly business activities that keep teams aligned and focused on execution.

A framework that organizes and aligns a company's vision, people, and processes. It provides tools and methods to improve communication, accountability, and decision-making, helping businesses run more smoothly and achieve their goals.

Business scalability is a company's ability to handle increasing workloads, customers, and revenue without sacrificing performance or requiring proportional increases in resources. It's the foundation for sustainable growth that lets you expand operations while maintaining or improving profit margins.

Cash flow management is the systematic process of tracking, analyzing, and optimizing the money moving in and out of your business. It's not just watching your bank account—it's strategically timing when you collect revenue and pay expenses to ensure you always have enough cash to operate.

A brief, focused team meeting held every day at the same time to share critical information, identify obstacles, and maintain alignment. This 5-15 minute check-in creates accountability, improves communication, and helps teams stay on track with their priorities without wasting time in longer meetings.

Operational efficiency metrics are quantifiable measurements that track how well a business uses its resources to produce goods or services. These include KPIs like productivity rates, cycle times, resource utilization, and cost per unit—essential tools for small businesses to identify waste, optimize processes, and maximize profitability with limited resources.

The Pomodoro Technique is a time management method that uses fixed work intervals (typically 25 minutes) followed by short breaks to optimize productivity and maintain mental freshness.

Pricing strategy models are frameworks businesses use to set optimal prices for their products or services. These include cost-plus pricing, value-based pricing, competitive pricing, and dynamic pricing approaches that balance profit margins with market position and customer perception.

Private equity investment in the ETA context refers to capital provided by investors to fund the search and acquisition of an established business. This funding typically covers both the searcher's salary during the hunt and the actual purchase, with investors receiving equity stakes in return for their financial backing.

Quantifiable measures that track how efficiently resources (time, labor, capital) are converted into outputs. These indicators help business owners identify inefficiencies, set performance benchmarks, and make data-driven decisions to improve operational effectiveness and profitability.

A financial document that tracks your company's revenue, expenses, and bottom-line results over a specific period. It shows whether you're making money and helps identify which parts of your business are profitable or need attention.

A tool that calculates the percentage of revenue that becomes profit after expenses. Essential for pricing decisions, financial health assessment, and strategic planning to ensure sustainable business growth and competitive positioning.

Revenue forecasting is the process of predicting future sales based on historical data, market trends, and business activities.

A tool that helps identify, evaluate, and prioritize potential threats to your business by plotting their likelihood against potential impact. It enables smarter decision-making by focusing resources on the most significant risks first.

The systematic process of improving each stage of your customer journey to increase conversion rates, reduce drop-offs, and maximize revenue from prospects. This involves analyzing data, testing changes, and refining your sales process to guide more leads efficiently toward becoming paying customers.

A financing model where entrepreneurs raise capital from investors to search for, acquire, and operate an existing small to mid-sized business. The searcher typically becomes CEO post-acquisition, with investors receiving equity in exchange for their funding.

Small business KPIs are measurable values that show how effectively a company is achieving key business objectives. These performance metrics track progress in areas like sales, marketing, finance, and operations, helping owners make data-driven decisions and focus resources on what truly drives growth.

Small business loans are specialized financing options designed to provide capital for business growth, equipment purchases, or operational needs. These loans come in various forms including SBA loans, term loans, lines of credit, and microloans—each with different terms, interest rates, and qualification requirements. Strategic use of business loans can fuel expansion, bridge cash flow gaps, or fund critical investments without diluting ownership.

The process of determining a small business's financial worth using methods like multiple of earnings, discounted cash flow, or asset valuation. Critical for buyers to establish fair purchase price, secure financing, and calculate potential ROI when acquiring an existing company.

A documented strategy outlining how a business will use platforms like Facebook, Instagram, and LinkedIn to reach customers, build brand awareness, and drive sales. It includes content calendars, posting schedules, engagement tactics, and performance metrics to track results.

The process of improving how goods move from suppliers to customers by reducing costs, minimizing delays, and eliminating waste. For small businesses, this means strategically managing inventory, selecting reliable vendors, and streamlining delivery to maximize efficiency with limited resources.

A value proposition is the clear statement of what your business offers customers that competitors don't. It articulates why customers should buy from you by highlighting unique benefits, solving specific problems, and delivering tangible value. An effective value proposition focuses on customer needs rather than product features, and becomes the foundation for all marketing and sales efforts. The strongest value propositions are concise, specific, and demonstrate a deep understanding of your target market's pain points.

A systematic approach to selecting, evaluating, and maintaining relationships with suppliers to ensure quality, cost-effectiveness, and reliability. It includes negotiating contracts, monitoring performance, and strategically aligning vendor partnerships with business goals to maximize value and minimize risk.

A structured, consistent cadence of team meetings held every week to review progress on quarterly priorities, identify and solve problems, and ensure alignment. This rhythm creates accountability, improves communication, and keeps everyone focused on what matters most for business growth.