The Ultimate Wise Business Plans Glossary
Your Complete Guide to Business Planning Success
This glossary is the go-to resource for entrepreneurs, startup founders, investors, lenders, and immigration attorneys looking to master the language of business planning. Whether you’re securing funding, seeking a visa, or simply building your business, understanding these terms is key to communicating credibility and confidence.
Strategy, Market & Analysis Terms
Executive Summary
A one-page overview that summarizes the key components of a business plan. It captures the opportunity, strategy, funding need, and mission—often the first and most important section to investors.
Feasibility Study
An assessment of a project’s likelihood to succeed. Includes analysis of market conditions, cost structure, competition, and operational viability.
SWOT Analysis
A strategic tool that examines a business’s Strengths, Weaknesses, Opportunities, and Threats.
Market Analysis
A data-backed breakdown of industry trends, target customers, size of the market, and forecasted growth.
Competitive Analysis
A study of competitors’ strengths, weaknesses, pricing, and positioning to identify your business’s edge.
Value Proposition
A clear statement of the unique benefits a company offers to its customers.
Business Description
Provides company background, mission, legal structure, and operational history.
Use of Funds
Outlines how capital from loans or investments will be spent—broken down into categories like staffing, equipment, or marketing.
Financial & Economic Terms
Revenue Model
Describes how a business earns income—via subscriptions, sales, advertising, licensing, etc.
Pricing Strategy
Explains how product pricing is determined, including value-based, cost-plus, or competitive methods.
Break-Even Analysis
Calculates the sales volume needed to cover all costs and start generating profit.
3–5 Year Financial Projections
Includes pro forma income statements, cash flow projections, and balance sheets to forecast financial performance.
Burn Rate
Rate at which a business spends capital before reaching profitability.
Runway
Time remaining before funds are depleted, calculated using burn rate.
Capitalization Table (Cap Table)
Breakdown of ownership structure, showing shareholders and equity distribution.
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization—a measure of operational profitability.
ROI (Return on Investment)
Calculates profit generated on capital invested.
DCF (Discounted Cash Flow)
A valuation method based on predicted future cash flows adjusted for time value of money.
Net Present Value (NPV)
Difference between present value of cash inflows and outflows over a period of time.
Operations & Management Terms
Operations Plan
Outlines how the business will operate daily—including facilities, suppliers, processes, and staffing.
Milestones
Defined targets or deliverables with associated deadlines and goals.
KPI (Key Performance Indicator)
Quantifiable metrics that track progress toward strategic objectives (e.g., churn rate, sales volume).
Organizational Chart
Graphical representation of the company’s internal structure and reporting lines.
Standard Operating Procedures (SOPs)
Documented routines and instructions that ensure efficiency and consistency.
Supply Chain Strategy
Plan for sourcing, manufacturing, warehousing, and distribution.
Management Team Overview
Bios and experience of key personnel, showing their ability to lead the business.
Immigration & Global Expansion Terms
E-2 Business Plan
Required for treaty investors applying for an E-2 visa. Must prove substantial investment and active business operation.
L-1 Business Plan
Supports a visa petition for an executive or manager transferring to a U.S. branch.
EB-5 Business Plan
Includes job creation details and economic impact study. Required for immigrant investors.
EB-2 NIW Plan
Used to show the business is in the national interest, with no need for a U.S. job offer.
E-1 Treaty Trader Plan
Focuses on demonstrating substantial trade between the U.S. and the treaty country.
Economic Impact Study
Breaks down projected contributions to GDP, tax revenues, and employment. Often supported by a credentialed economist.
RFE Response Support
Plans tailored to respond to USCIS Requests for Evidence (RFEs) with detailed financials, job creation proof, and compliance.
Branding, Marketing & Sales Terms
Marketing Plan
Details how a business attracts and retains customers through digital, print, or direct marketing.
Go-to-Market Strategy (GTM)
Outlines launch process, customer acquisition tactics, and sales conversion strategies.
Customer Segmentation
Divides customers into distinct groups based on demographics, behavior, or preferences.
Sales Funnel
Visualizes customer journey from awareness to purchase.
Conversion Rate Optimization (CRO)
Strategies to increase the percentage of visitors who complete a desired action.
Lifetime Customer Value (LTV)
Forecasts long-term profitability per customer.
Referral Program
Incentivized system to encourage word-of-mouth promotion.
Plan Types & Supporting Documents
Startup Business Plan
Custom-built for entrepreneurs launching a new venture.
Investor Business Plan
Tailored to attract funding from venture capitalists, angels, or private equity.
Bank/SBA Loan Plan
Compliant with SBA requirements and bank lending criteria.
Pitch Deck
Slide presentation summarizing the business plan for quick investor review.
Franchise Business Plan
FDD-compliant plan for franchisees, includes territory analysis and brand alignment.
Nonprofit Business Plan
Focuses on mission impact, funding sources (grants, donors), and programmatic goals.
Franchise Disclosure Document (FDD)
Legal document provided to potential franchisees. Must be referenced in franchise plans.
Proof of Funds (POF)
Documentation showing liquid assets available to support a business investment.
Logo Design & Branding Kit
Essential visual identity tools created to match the business strategy.
Business Plan Printing & Binding
Professionally formatted hard copies for presentations, banks, or visa interviews.
Legal & Regulatory Planning Terms
Articles of Incorporation
Official documents filed with the state to legally form a corporation.
Business License
Government-issued authorization to operate a specific business type in a given location.
EIN (Employer Identification Number)
Tax identification number issued by the IRS to track business income and payroll.
Zoning and Compliance
Local regulations that determine what types of businesses can operate in a specific area.
Risk Management Plan
Identifies potential business risks (e.g., legal, operational, market) and outlines mitigation strategies.
GDPR/CCPA Compliance
Privacy regulations concerning data collection and usage—crucial for tech and SaaS plans.
Research & Industry Analysis Terms
TAM, SAM, SOM
Total Available Market, Serviceable Available Market, and Serviceable Obtainable Market—metrics to size market opportunity.
Porter’s Five Forces
A strategic framework used to analyze an industry’s competitive intensity and profitability.
Benchmarking
Comparing performance metrics against competitors or industry standards.
Industry Codes (NAICS/SIC)
Standard classification systems used to identify the type of business activity—often required for funding applications.
Primary vs. Secondary Research
Primary research is original data gathered from surveys or interviews; secondary uses published data.
Product, Service, & Innovation Terms
MVP (Minimum Viable Product)
The simplest version of a product that can be released to test market response.
Product-Market Fit
The degree to which a product satisfies a strong market demand.
Intellectual Property Strategy
A roadmap for protecting inventions, trademarks, copyrights, and proprietary information.
Product Roadmap
Timeline of planned product features, updates, or releases.
Service Differentiation
How your service offering stands out from competitors in functionality, pricing, or delivery.
Tools & Technology Stack Terms
CRM (Customer Relationship Management)
Software used to manage customer data, sales, and engagement.
ERP (Enterprise Resource Planning)
Integrated platform for managing supply chains, manufacturing, and financials.
CMS (Content Management System)
Technology used to build and manage websites (e.g., WordPress, Shopify).
SaaS (Software as a Service)
Cloud-based delivery model for software applications.
Technology Stack
The set of software, tools, and platforms used to develop and operate your digital product.
Marketing Funnel & Sales Terms
Lead Generation
The process of attracting and converting prospects into potential customers.
Sales Funnel
The buyer’s journey from awareness to purchase, often segmented into top (TOFU), middle (MOFU), and bottom (BOFU) stages.
Customer Journey Map
Visual representation of customer interactions across all touchpoints.
Churn Rate
The percentage of customers who stop doing business with you over a given period.
Upsell / Cross-sell
Strategies to increase revenue per customer through additional or complementary products/services.
International & Trade Terms
Import/Export Business Plan
Details logistics, regulatory compliance, customs procedures, and global supplier networks.
Trade Compliance Strategy
Ensures conformity with export controls, tariffs, and international trade laws.
Incoterms
International Commercial Terms that define buyer/seller responsibilities in shipping.
Foreign Market Entry Strategy
Plan for entering new international markets via licensing, partnerships, or direct investment.
Founder Readiness & Soft Skills
Founder-Market Fit
The alignment between the founder’s experience and the market they’re entering.
Entrepreneurial Mindset
Traits such as resilience, adaptability, risk tolerance, and strategic thinking.
Storytelling in Fundraising
Crafting a compelling founder and business narrative that resonates with funders.
Advisory Board
Group of external experts who offer strategic guidance without formal governance roles.
Infrastructure & Operations Scaling
Supply Chain Management (SCM)
Process of planning, sourcing, manufacturing, and delivering products.
Logistics Strategy
Coordination of transportation, warehousing, and fulfillment to optimize cost and speed.
Kitting & Assembly
Value-added services used in e-commerce and manufacturing to pre-package product sets.
Automation Plan
Integrating technology or robotics to improve productivity and reduce labor costs.
Document Types and Deliverables
Investor Executive Summary (1-pager)
Condensed version of your business plan meant to open doors for pitch meetings.
One-Page Business Plan
Simplified version for early-stage founders and internal communication.
Franchise Business Plan
Aligns with franchisor’s model and often supports SBA loan applications.
Bank-Ready Business Plan
Meets SBA, commercial lender, or credit union standards—includes full financials.
Economic Impact Report
Required for EB-5 and infrastructure projects; measures job creation and tax benefits.
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Wise Business Plans has helped over 15,000 entrepreneurs secure funding, visas, and strategic clarity.
Whether you’re creating your first plan or refining a complex model, use this glossary as your foundation for understanding—and let our MBA consultants take you the rest of the way.
