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As with any new venture there is also a new ‘language’ that goes with it. A strong comprehension of business and financial lingo will help you understand your financing, marketing and regulatory options. On the other hand, if you are unfamiliar with the terms that are being used you are much more likely to make poor business decisions or miss out on opportunities.
The following is a list of words that you may encounter within a website and throughout the business development process:
Ag Tourism - Ag tourism is the marriage between two of Alberta's top industries - Agriculture and Tourism. It presents the consumer or tourist with an opportunity to engage in a direct exchange of values between themselves and the farm community - whether it be at the Farmers' Market, on a farm tour, at an agriculture festival or fair, or at a country vacation farm or market garden. Consider Ag Tourism as a collection of ag-based attractions, events and services.
Broker – While distributors buy product from you, brokers do not. They represent your product in return for a commission on sales. They sell directly to retailers and distributors. A broker is especially useful when attempting to market a product in a new region or outlet.
Business Number (BN) – All businesses operating in Canada must obtain a Business Number (BN) from Canada Revenue Agency. The BN is a numbering system that simplifies and streamlines the way businesses deal with the government.
Business Plan - A business plan is a description of the business, including its products, its markets, the people involved and the financing needs. A well-prepared business plan will not only assist in plotting a course for the company, it can also serve as a vital sales tool.
Cooperative – A business that is owned, organized, and controlled by the people who use its products and services, and whose earnings are distributed on the basis of use of the cooperative rather than level of investment.
Co-Packing - A co-packer is a food processing company that processes, packages and distributes a food product on behalf of another company.
Corporation – A business that is a separate legal entity and independent from the owners of the business.
Debt Capital – The amount of money borrowed and used to establish a business.
Consumer Demographics - Those characteristics that define a particular group of consumer including age, education level, family size, income etc.
Dine Alberta - Regional cuisine advocates the usage of quality locally grown ingredients, in union with the culture, geography, and history of Alberta. The "Dine Alberta: Savour the Regional Flavour" project is a stimulating way to showcase local agriculture products, family owned farms, and value added processing. In doing so it incorporates producers, processors, distributors, restaurants, chefs, media, and most importantly, the consumers.
Direct Marketing – Selling directly to the consumer in the absence of a middleman.
E-Business (Electronic Business) - E-business is the conducting of business on the Internet, not only buying and selling but also servicing customers and collaborating with business partners.
Economies of Scale – Occur when input costs are decreased as the volume purchased is increased (e.g. jars purchased in larger quantities are less expensive per jar).
Entrepreneur – A person who takes the risk of organizing and operating a new business venture.
Equity – The amount that a business, property, etc. is worth beyond what is owed on it.
Feasibility Assessment - As the name implies, a feasibility study is an analysis of the viability of an idea. The feasibility study focuses on helping answer the essential question of “should I proceed with the proposed project idea?” All activities of the study are directed toward helping answer this question.
Market Analysis – Used to determine the attractiveness of a market and to understand its evolving opportunities and threats as they relate to the strength and weaknesses of the business.
Market Research – An orderly, objective way of learning about people – the people who buy from you or might buy from you. Market research may be indirect (gathering of information that is already available) or direct (generation of new information).
Marketing Plan - A written document that details the actions necessary to achieve one or more marketing objectives. It can be for a product or service, a brand, or a product line. A marketing plan is part of an overall business plan.
Partnership – A partnership is established when two or more people agree to pool their financial, managerial, and technical resources in order to operate a business for profit.
Patent – A patent is a document protecting the rights of the inventor on physical objects. It gives the inventor the right to exclude others from making, using or selling his/her invention from the day the patent is granted by the government to a maximum of 20 years after the day when the patent application was filed.
Sole Proprietorship – A business that is owned by one person who retains all of the legal rights and bears all of the responsibilities associated with the business
Target Market - The target market is a defined segment of the market that is the strategic focus of a business or a marketing plan. Normally the members of this segment possess common characteristics and a relative high propensity to purchase a particular product or service. Because of this, the member of this segment represents the greatest potential for sales volume and frequency. The target market is often defined in terms of geographic and demographic characteristics.
Trademark – Words, symbols and phrases that identify a product or service. Because they are the identity of a product it is important to protect trademarks and shield their use from competitors.
Universal Product Code (UPC) - The UPC is one of a wide variety of bar code languages called symbologies. The UPC is the barcode widely used in the United States and Canada for trade items in stores.
Value Chain – A way of responding to the demands of the customer through the collaboration of business owners and producers; an alliance of enterprises collaborating vertically to achieve a more rewarding position in the market.
Venture Capital - A type of private equity capital typically provided by professional, outside investors to new, growth businesses. Generally made as cash in exchange for shares in the investee company, venture capital investments are usually high risk, but offer the potential for above-average returns.
Working Capital – The excess of current assets over current liabilities. It is the money available to finance routine operations of the business.
Phone the Ag-Info Centre, toll-free in Alberta at 310-FARM (3276), for assistance. |
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