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Common Business Abbreviations
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ROI
Return on Investment – a performance measure used to evaluate the efficiency or profitability of an investment.
B2B
Business to Business – transactions conducted between companies rather than between a company and individual consumers.
B2C
Business to Consumer – transactions conducted directly between a company and consumers who are the end-users of its products or services.
MVP
Minimum Viable Product – the version of a new product that allows a team to collect the maximum amount of validated learning about customers with the least effort.
KPI
Key Performance Indicator – a type of performance measurement that evaluates the success of an organization or of a particular activity in which it engages.
SaaS
Software as a Service – a software distribution model in which a third-party provider hosts applications and makes them available to customers over the internet.
P&L
Profit and Loss Statement – a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period.
CRM
Customer Relationship Management – the strategies, practices, and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle.
SEO
Search Engine Optimization – the process of improving the quality and quantity of website traffic by increasing the visibility of a website or a web page to users of a web search engine.
CTA
Call to Action – an instruction to the audience designed to provoke an immediate response, usually using an imperative verb such as 'call now,' 'find out more,' or 'visit a store today'.
VC
Venture Capital – a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential.
IPO
Initial Public Offering – the first time that the stock of a private company is offered to the public.
NDA
Non-Disclosure Agreement – a legally binding contract that establishes a confidential relationship between a person or business and the person with whom they share confidential information.
B2G
Business to Government – refers to commerce between companies and public sector or government agencies.
EOD
End of Day – often used in the context of a deadline for a task or project to be completed by the end of the business day.
FTE
Full-Time Equivalent – a unit that indicates the workload of an employed person in a way that makes workloads or class loads comparable across various contexts.
LBO
Leveraged Buyout – the acquisition of another company using a significant amount of borrowed money (bonds or loans) to meet the cost of acquisition.
UX
User Experience – refers to a person's emotions and attitudes about using a particular product, system, or service.
SWOT
Strengths, Weaknesses, Opportunities, Threats – a strategic planning technique used to help a person or organization identify the four elements relative to competition and project planning.
GAAP
Generally Accepted Accounting Principles – a collection of commonly-followed accounting rules and standards for financial reporting.
R&D
Research and Development – a set of activities for improving existing products and procedures or developing new products and processes.
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization – an indicator of a company's financial performance which can be used as a proxy for the company's current operating profitability.
COGS
Cost of Goods Sold – the direct costs attributable to the production of the goods sold by a company.
MoM
Month-over-Month – a method of comparing financial statements for one month to the financial statements of the previous month.
A/B Testing
A/B Testing – a method of comparing two versions of a webpage or app against each other to determine which one performs better.
B2E
Business to Employee – commerce transactions between a company and its employees.
CAPEX
Capital Expenditures – funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.
CAGR
Compound Annual Growth Rate – the mean annual growth rate of an investment over a specified time period longer than one year.
CSR
Corporate Social Responsibility – a type of international private business self-regulation that aims to contribute to societal goals of a philanthropic, activist, or charitable nature.
D2C
Direct to Consumer – a business model where companies sell directly to consumers, cutting out intermediaries such as retailers, wholesalers, and distributors.
SLA
Service Level Agreement – a commitment between a service provider and a client that stipulates the quality and availability of the service agreed upon.
PPP
Purchasing Power Parity – an economic theory that compares different countries' currencies through a 'basket of goods' approach.
SKU
Stock Keeping Unit – a unique identifier for each distinct product and service that can be purchased.
SME
Small and Medium-sized Enterprises – businesses whose personnel numbers fall below certain limits, with the abbreviation often used by international organizations such as the EU, UN, and World Bank.
USP
Unique Selling Proposition – a factor presented by a seller as the reason that one product or service is different from and better than that of the competition.
YOY
Year-over-Year – a frequently used financial comparison for looking at two or more measurable events on an annual basis.
M&A
Merger and Acquisition – aspects of corporate strategy, corporate finance, and management dealing with the buying, selling, dividing, and combining of different companies and similar entities.
PE
Price to Earnings Ratio – a ratio for valuing a company that measures its current share price relative to its per-share earnings.
BOM
Bill of Materials – a comprehensive list of parts, items, assemblies, and other materials required to create a product, along with the instructions required to gather and use the required materials.
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