20 common business acronyms every new startupper should understand

by | Feb 3, 2017

Business acronyms have now become part of our everyday lives. However, some of us still struggle to understand the meaning and usage of these buzz words. If you are currently working with a startup or thinking in that direction, it is pertinent that you understand some of these business acronyms.

B2B – Business to Business

This refers to a transaction between businesses rather than between a business and a consumer. A typical example is transactions between a wholesaler and a retailer.

B2C – Business to Consumer

Advertisement

This is business transactions between a company and the end-user of its products.  This term is also used to describe online retailers or companies that sell products and services directly to consumers via the internet.

IPO – Initial Public Offering

This is the first sale of stock by a private company to the public. It is also known as stock market launch.

ISP – Internet Service Provider

This is a company that provide internet access to individuals and companies

KPI – Key Performance Indicators

This is a type of performance measurement that evaluates the success of an organization or an activity it engages in.

MSRP – Manufacturer’s Suggested Retail Price

Advertisement

Also known as recommended retail price (RRP) or suggested retail price (SRP), this is the amount of money the manufacturer of a product recommends the product be sold for in retail stores. The aim is to standardize prices in all locations but this may not be the price consumers pay in the end.

NDA – Non-Disclosure Agreement

This is a legally binding contract between at least two parties that outlines confidential material, knowledge, or information that should not be shared with a third party. It is also known as a confidentiality agreement (CA), confidential disclosure agreement (CDA), proprietary information agreement (PIA), or secrecy agreement (SA)

QC – Quality Control

This is a procedure or set of procedures put in place to ensure that a manufactured product or service rendered adheres to a defined set of quality criteria.

QA – Quality Assurance

This is a procedure or set of procedures designed to ensure that a product or service under development (before completion) meets specified requirements.

ROI – Return on Investment

This is a measuring tool investors used by investors to determine how well their investment in a particular company is faring. It helps investors make important decisions like whether to undertake an investment or not

R & D – Research and Development

This refers to the investigative activities conducted by a business to improve existing products and procedures or to lead to the development of new products and procedures.

OEM – Original Equipment Manufacturer

This a company that manufactures equipment’s that are eventually re-branded and sold by other companies. Sometimes this term applies to the reseller as well.

POS – Point of Sale

This is the checkout point or cashier counter in retail stores. It can also apply to the hardware and software used at point of sale locations including electronic cash register systems, touch-screen display, barcode scanners and receipt printers.

FIFO – First in, First Out

This term is used both in computer programming  and accounting; it assumes that what comes first is handled first

LIFO – Last in, First Out

This term is used both in computer programming and accounting; it assumes that what comes last is handled first

VC – Venture Capital

A form of financing provided by investors to start-up companies  or small businesses that are deemed to have long-term growth potentials

SMEs -Small and Medium-sized Enterprises

These are business whose personnel numbers and turnover or balance sheet total fall below a certain limit.

CSR- Corporate Social Responsibility

This is a corporation’s  initiatives to assess and take responsibility for the company’s effects on environmental and social wellbeing. The corporation engages in actions that further some social good, beyond the interests of the firm and what is required by law.

CAC – Customer Acquisition Cost

Customer acquisition cost is the cost associated with convincing a consumer to buy a product or service. This cost is incurred by the organization and includes research, marketing, and advertising costs. It is a metric used to analyze return on investments(ROI) of acquisition and the value of the customer to the company.

XaaS – Everything as a service

Also known as “X as a service,”  or “anything as a service”  this term refers to the growing diversity of services available over the internet via cloud computing rather than being provided locally, or on site. Some of these services delivered to organizations via the internet include software (Software as a Service (Saas)), Communications (Communications as a service(CaaS)) and storage as a service.

Onyinye Uche
Onyinye Uche

Writer. Interested in EdTech and tech careers


Are you in tech and you are looking at getting a foreign remote job or you want to move abroad? Fill this form and you will get the BEST resources to help you get that high paying remote job as well as japa easily! WAGMI!

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Recent News

$2 million to drive learning via WhatsApp 

$2 million to drive learning via WhatsApp 

On #TechpointDigest, we discuss how major players in the African mobility space can change the mobility narrative, FoondaMate’s $2 million funding, Twitter Create, and AMP’s $5.6 million seed round.

[PODCAST] Taxing calls to give you healthcare

[PODCAST] Taxing calls to give you healthcare

The Nigerian government wants to tax phone calls to provide better healthcare. In today’s edition of the #TechpointAfricaPodcast, we discuss possible implications and upsides to this.

TABS is tomorrow! 💃 💃

TABS is tomorrow! 💃 💃

On #TechpointDigest, we discuss Victory Farms’ $5m investment, Netflix for kids and people with disabilities, and TikTok’s plan to credit creators.

Subscribe to Techpoint Digest!

A daily 5-minute roundup of happenings in African and global tech, sent directly to your email inbox, between 5 a.m. and 7 a.m (WAT) every week day!

Please check your email to confirm your subscription.

Subscribe to Blockchain Explorer

Analysis oninnovation, regulations, and trends inthe blockchain sector, as it concerns Africa

Please check your email to confirm your subscription.

Subscribe to The Experts

A bi-weekly where tech career specialists take us on their journey from newbie to expert, and how they became successful in the industry.

Please check your email to confirm your subscription.

Subscribe to Founder's Table

A monthly series, where we catch up with founders in the startup ecosystem, learn about their failures, successes and a few tricks of the trade

Please check your email to confirm your subscription.

Copy link
Powered by Social Snap