Assets: Anything of value owned by or under the control of an individual or business. For the nonprofit, one of the most durable of assets is the intelligence and experience represented on the board and among the management, staff and advisors.

Available Capital: Those assets or resources that your organization currently possesses that are necessary for your earned-income venture’s success. For the nonprofits this includes all hard assets like buildings and equipment as well as products, services, programs and the expertise of management, staff and board.

Branding: The cumulative activities and features that differentiate one-business products from another.

Breakeven Analysis: An estimated measurement of the sales volume required for a venture to breakeven in terms of profit and loss - that point at which a businesses costs exactly match its sales revenues and it neither has incurred a loss nor made a profit.

Business: The provision of goods or services in exchange for something of value as an ongoing activity.

Business Plan: A written description of a business’ future plans - of what it plans to do and how it plans to do it.

Capital: Assets or wealth, in whatever form, used or capable of being used to produce more assets or wealth. For the nonprofit this is most often represented by a specialized intelligence or expertise, but can also include facilities (location), buildings or real estate, contracts or leases, equipment, patents, licenses or copyrights.

Capitalization: To invest funds in starting an earned-income venture. For the nonprofit this may include its own financial resources which could encourage other donors/investors to get involved.

Competition: Other businesses offering the same or similar products or services.

Competitive Advantage: Characteristics or factors that make a business’ products or services better or different than its competitors (ex: lower price, higher quality, better name recognition).

Core Competencies: Those skills and/or talents that are required to make a business successful.

Core Constituencies: Those individuals or organizations that comprise an organization’s main source of internal and external support. For the nonprofit these include board, advisors, donors and all those served.

Customer: An individual or business to whom another business provides a product or service.

Demand: The level of desire and interest to pay by a customer or client for a particular product or service.

Differentiation: To make a product or service stand out among its competitors by adding features that increase value to potential customers.

Distinctive Competence: A particular strength(s) that provides advantage to a venture over it competitors in a particular market.

Diversification: To expand a line of products or services by increasing the variety of things produced or of operations undertaken. For nonprofits this often means adding a component to an existing service that provides more value to a customer or client.

Earned-income: Revenue generated through the sale of products or services. For the nonprofit a valuable method of diversifying its funding needs.

Executive Summary: A brief summation of a business document presented at its beginning.

Financial Plan: That part of a business plan that details the assumptions, financial projections and cash flow of a proposed venture.

Fixed Costs: Costs that do not change when the levels of production or sales change (i.e. rent) also called overhead.

Fund Development: Activities of the nonprofit implemented to acquire philanthropic support.

Funders: Institutions and individuals who invest in nonprofit enterprises.

Gross Revenue: The total of all proceeds from the sale of goods or services without costs subtracted.

Industry: The larger field of production or service in which any business operates. For example, the Boy Scouts could be said to be a major player in the youth services industry.

Investor Potential: The number and level of available donors/investors interested in an earned-income venture.

Investors: Those philanthropic donors or commercial lenders who provide the funding for a business venture. For the nonprofit these investors are most often foundations, corporations or individuals who are attracted to the cause.

Loss: The negative difference between the cost of providing a product or service and the amount of compensation which is received for it.

Market Share: The percentage of the total market that a business lists as “its” customers. For example, if there are 1000 patients known to have a specific ailment, and the organization lists 100 of them among those it treats, the business would have 10% of the market share for that particular kind of patient.

Marketing Plan: A business' overall approach to marketing its products and services through packaging, pricing, promotion and distribution.

Mission: A brief statement of why an organization is in business and what it plans on becoming.

Mission Compatibility: Those features of an earned-income venture that are in positive alignment with an organization’s core mission.

Net Revenue: The total of all proceeds from the sale of goods or services with all costs subtracted.

Niche Market: A distinct and often small segment of a particular market that is overlooked or poorly served by that market's major providers.

Opportunities: Unique and differentiating qualities or values that build on existing assets. For the nonprofit the best earned-income opportunities lie within your strongest assets.

Outsourcing: Having a component or service performed or supplied by an individual or business outside your own.

Overhead: Term generally applied to the peripheral costs of operation such as utilities and rent.

Positioning: The process of designing a business image or offering so that it holds a distinctive place in the customer’s mind.

Product: The item, service or program offered to customers or clients in exchange for compensation.

Profit: The positive difference between the cost of providing a product or service and the amount of net compensation received in exchange.

Project Complexities: The ability of an organization to sustain the required skills and/or talents necessary to begin and achieve operational success.

Revenue Potential: The level of possible income from the sale of a product or service. For the nonprofit the diversification of their development needs through an earned-income venture.

Sales Plan: A businesses overall approach to promoting and selling it products or services.

Start-up Costs: The expenses incurred in beginning a new or expanded product or service.

Sustainability: That point at which a nonprofit has built a long-term financial and managerial capacity to meet the current and future needs of its community, constituency and mission.

Social Entrepreneur: A person or persons who encourages a nonprofit earned-income venture that better serves community, constituency and mission.

Target Market: That portion of the market within which customers are divided into specific groups or segments. For example, in health care there is ambulatory, acute, rehabilitative and long-term care.

Unrelated Business Income Tax: A federal tax on the “profits” of a nonprofit business venture that are not related to the charitable purposes of the nonprofit.

Variable Cost: A cost that changes proportionally with the level of production and sales (i.e. materials, labor).

Venture Capital: Money needed or provided to start-up a business or enterprise.