In order to run a successful business, it helps to learn the lingo. You’ll come across all kinds of complex terminology when first starting a business – understanding this terminology can help when winning over educated clients and when outsourcing professional services like marketing and accounting.
Making up this business terminology are a range of acronyms such as B2B, SEO and KPI. This guide explains the meanings behind some of the most popular acronyms found in business.
AEAP or ASAP: As Early As Possible or As Soon As Possible. If a supplier or client puts this in an email, they usually want something done immediately (i.e. ‘could you send me over those documents ASAP’). AEAP tends to be a softer version of ASAP when you don’t want to sound too severe, but is less widely used.
AR: Accounts Receivable. Usually written in an invoice or bill to refer to the amount of unpaid money left withstanding.
B2B: Business to Business. Any business that mainly sells products or services to other businesses (e.g. packaging companies, commercial cleaners, business software providers)
B2C: Business to Consumer. Any business that mainly sells products or services to consumers. (e.g. bars and restaurants, home furniture sellers, hairdressers)
CEO: Chief Executive Officer. The big boss of the company. Traditionally used to refer to the owner of a large company, but technically any business owner can refer to themselves as CEO.
CFO: Chief Financial Officer. The senior executive in charge of managing a company’s finances.
COB: Close of Business. The time at which a business closes for the day (usually 5 or 6pm)
COO: Chief Operating Officer. Usually second in command to the CEO (Chief Executive Officer).
CPU: This one has two meanings – Central Processing Unit (in tech) or Cost Per Unit (in finance). Unless you’re talking to someone about computers, it’s likely to be the latter one. When ordering items in bulk from a supplier, the supplier may talk about the CPU.
CRM: Customer Relationship Management. Usually used when referring to CRM software – this is software that is used to keep track of customers and leads. An online clothes store might use CRM software to keep track of customers that are returning and those that aren’t so that it can send out different emails and promotions to each of them.
CTR: Click Through Rate. The ratio of times people click on a link versus the amount of times they are exposed to a link. For instance, if 100 visitors visit a page with a link and 2 of them click on the link, the CTR would be 2%.
EOD: End of Day. If a customer wants work done by the EOD they want it done by the end of the day.
FYI: For Your Information. Usually used when emailing over useful resources to a client, supplier or colleague – such an email usually doesn’t need a response.
HR: Human Resources. A staff member, department or company that is in charge of handling employee-related matters. This could involve recruitment, paying employees, recording absence and managing employee incentives. It’s common for companies to use a HR advisor when recruiting their first employees.
IAM: In A Meeting. Usually texted or emailed to quickly notify someone they’re unable to be contacted at that time.
KPI: Key Performance Indicator. Any metric that helps to measure how well a business is performing. Gross profit, employee turnover and website traffic are all KPIs.
OOO: Out of Office. Emailed to someone to let them know that you are not currently in the office to handle their enquiries.
OTP: This one has numerous meanings including One Time Password, Offer to Purchase and Over the Phone. The latter one might be used in an email when referring to a phone conversation (e.g. ‘as discussed OTP…’)
PA: Personal Assistant. A member of staff that may help with administrative support. A lot of business owners hire a PA when all the day-to-day admin gets to overwhelming.
P&L: Profit and Loss. An income statement that shows how much a company has earned and how much they have spent in a certain time period.
PPC: Pay Per Click. Most of the internet ads you see are PPC ads – you pay for them to display until a certain number of people have clicked on them. Google Ads and Facebook Ads are examples of PPC ads.
PR: Public Relations. A PR company is often used by businesses to improve their reputation and secure media coverage. Larger companies may have a PR staff member or even a PR department.
ROI: Return on Investment. When you spend money on your business, the ROI is the amount of money you’re likely to make back in the long run. For instance, when upgrading your lighting, you might want to consider the ROI – will the cost of installing new lighting save you money in energy in the long run.
SEO: Search Engine Optimisation. This term is used in digital marketing and refers to the process of boosting one’s rankings on search engines such as Google and Bing. Some SEO service agencies handle other aspects of digital marketing such as web design. SEO is essential for attracting visitors to your company website.
SMB or SME: Small and Midsize Business or Small and Midsize Enterprise. An SMB product is one that is aimed at small to midsize businesses.
TOS: Terms of Service. This might be delivered in an email that contains an attachment containing terms and conditions.
UI: User Interface. Usually used in business software, UI refers to the way in which a user interacts with the product.
UX: User Experience. Similar to UI, but instead it describes the experience that the user takes away.
VPN: Virtual Private Network. A VPN allows you to keep your details private and anonymous while using a public network. It can be useful when working from a public location such as a coffee bar, preventing you from being a victim of a cyberattack.
WFH: Work From Home. Something that many of us have been doing during lockdown in 2020.
