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Common Business Abbreviations

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ROI

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Return on Investment – a performance measure used to evaluate the efficiency or profitability of an investment.

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B2B

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Business to Business – transactions conducted between companies rather than between a company and individual consumers.

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B2C

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Business to Consumer – transactions conducted directly between a company and consumers who are the end-users of its products or services.

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MVP

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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.

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KPI

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Key Performance Indicator – a type of performance measurement that evaluates the success of an organization or of a particular activity in which it engages.

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SaaS

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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.

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P&L

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Profit and Loss Statement – a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period.

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CRM

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Customer Relationship Management – the strategies, practices, and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle.

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SEO

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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.

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CTA

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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'.

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VC

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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.

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IPO

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Initial Public Offering – the first time that the stock of a private company is offered to the public.

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NDA

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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.

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B2G

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Business to Government – refers to commerce between companies and public sector or government agencies.

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EOD

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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.

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FTE

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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.

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LBO

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Leveraged Buyout – the acquisition of another company using a significant amount of borrowed money (bonds or loans) to meet the cost of acquisition.

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UX

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User Experience – refers to a person's emotions and attitudes about using a particular product, system, or service.

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SWOT

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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.

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GAAP

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Generally Accepted Accounting Principles – a collection of commonly-followed accounting rules and standards for financial reporting.

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R&D

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Research and Development – a set of activities for improving existing products and procedures or developing new products and processes.

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EBITDA

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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.

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COGS

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Cost of Goods Sold – the direct costs attributable to the production of the goods sold by a company.

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MoM

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Month-over-Month – a method of comparing financial statements for one month to the financial statements of the previous month.

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A/B Testing

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A/B Testing – a method of comparing two versions of a webpage or app against each other to determine which one performs better.

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B2E

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Business to Employee – commerce transactions between a company and its employees.

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CAPEX

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Capital Expenditures – funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.

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CAGR

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Compound Annual Growth Rate – the mean annual growth rate of an investment over a specified time period longer than one year.

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CSR

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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.

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D2C

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Direct to Consumer – a business model where companies sell directly to consumers, cutting out intermediaries such as retailers, wholesalers, and distributors.

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SLA

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Service Level Agreement – a commitment between a service provider and a client that stipulates the quality and availability of the service agreed upon.

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PPP

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Purchasing Power Parity – an economic theory that compares different countries' currencies through a 'basket of goods' approach.

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SKU

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Stock Keeping Unit – a unique identifier for each distinct product and service that can be purchased.

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SME

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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.

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USP

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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.

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YOY

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Year-over-Year – a frequently used financial comparison for looking at two or more measurable events on an annual basis.

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M&A

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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.

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PE

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Price to Earnings Ratio – a ratio for valuing a company that measures its current share price relative to its per-share earnings.

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BOM

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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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