There are some key words that come up a lot when you talk about business. We try here to give a simple explanation for some of the most common ones.
A record of your INCOME and EXPENSES so you can keep track of how much money you are making and how much you are spending for your business. It makes things much easier to work out what INCOME TAX or VAT you might need to pay.
Your business name and logo; the colours and fonts you use on your materials, packaging, websites and documents; and even what your business believes in. Overall, how your business is seen by customers. For example, Apple is a great brand.
An agreement between people or companies where each side promises to do something for the other one (like provide products or pay money). Be careful - it does not have to be in writing to be legally binding!
As well as the favourite Venture Adventures team snack, this also means little files that get stored on your computer so when you go back to the same website again, it remembers what information you put in before. Websites need to ask users for their consent before using COOKIES because they are included under the law of DATA PROTECTION.
The law requires everyone to be careful how they obtain, store and use (known as ‘processing’) any PERSONAL DATA they get from customers, employees, or anyone else. You should always get someone’s consent before processing their PERSONAL DATA and be sure you have a good legal reason for doing so. This law also applies to COOKIES.
A unique address on the internet that you can link your WEBSITE to so that people can find it, ending in '.com' or '.co.uk' for example.
Someone who has great ideas, energy and self-belief and who is prepared to work hard and take some risks to create their own business. Someone like you!
All the things you have to pay for to run your business. For example: materials you need to make stuff, stationery, computer and office equipment, delivery costs, travel, and so.
The total amount of money your business receives from customers when you sell your PRODUCTS or SERVICES.
You have to pay the government a percentage of the money you make (which the government then uses to pay for our schools, hospitals, roads and a lot more.). The more you earn, the higher the percentage tax you have to pay.
Although it is called INCOME tax, it is actually a tax on your PROFITS – you can take away most of your EXPENSES from your INCOME to work out what to work out the amount that will be taxed.
If you set up a company for your business, your company needs to pay income tax known as ‘Corporation Tax’.
A list of all the materials, supplies and STOCK you have.
A document provided by the seller setting out what PRODUCTS or SERVICES are being sold, what the price is, the amount of VAT being added on, business details of the seller and instructions about how to pay the seller. You often see a copy of the CONTRACT for the sale of the PRODUCT or SERVICE attached to it. Sometimes called the ‘bill.’
How you get people to know about your business and persuade them how good your BRAND, PRODUCTS and SERVICES are.
A WEBSITE like Etsy, eBay, Not On The High Street, or Amazon where you can open an account and set up your own online shop, to sell your PRODUCTS and maybe even SERVICES. They get lots of customers so it may help you to sell more than you would on your WEBSITE, at least to start with.
Any information that can identify a particular person, such as their name, where they live, email address, IP address (that is the particular address your computer has on the internet), bank account details and so. More sensitive PERSONAL DATA includes things like information about someone’s religion, ethnic background or medical history. Basically information where people want to control who they share it with. DATA PROTECTION law helps them protect it.
Physical things you can touch, or digital downloads, that your business might sell to other people.
The amount of money you are left with from selling your stuff after you have paid all your bills.
PROFIT = INCOME – EXPENSES
Actions your business might do for other people to get paid. For example, doing gardening work, delivering PRODUCTS, etc.
A short, memorable catch-phrase or sentence that customers will associate with your brand. Our slogan is “For the next generation of entrepreneurs” – hopefully this is memorable!
Websites where you can join groups to share information, photos and videos about yourself or your business.
The PRODUCTS you have ready to sell.
What it costs you to make one of your PRODUCTS or provide your SERVICE for one hour. You can work this out by adding up all your EXPENSES and dividing it by the number of PRODUCTS you can make or the number of hours for which you will provide the SERVICE.
Value Added Tax. When you sell PRODUCTS or SERVICES, most of the time you have to pay the government a percentage of what you charge your customers. This is usually 20% although some things have a lower percentage and some are free (for example 0% for children’s clothes and digital downloads). So, when you ask customers to pay you, you would add this VAT percentage on to the price you charge. For example, if you sold a picture for £10, you would need to pay VAT to the government of 20% of £10, which is £2. So, you would add this on to your price and charge £10 +VAT, which is £10 + £2 = £12.
Don’t worry - you only have to start reporting to the government when your INCOME gets up to about £85,000. Something to aim for!
Your business home on the internet setting out all the information, documents, videos, shop etc. that you want your customers to see. For customers to be able to find it, you need to link it to a DOMAIN NAME.