An Employer Identification Number (EIN) is a unique nine-digit identification number assigned to businesses operating in the United States. The number is issued by the Internal Revenue Service (IRS) and is primarily used for federal tax administration and business identification....

What is Doing Business As (DBA)?   When a business operates using a name that is different from the owner’s name or from the legal name of the partnership, LLC, or corporation, it is said to be “doing business as,”...

What is a Distribution Channel? Distribution channel refers to the network used to get a product from the manufacturer or creator to the end user. When a distribution channel is “direct,” the manufacturer is selling directly to the end user...

What is Direct Marketing? Direct marketing is a promotional method that involves presenting information about your company, product, or service to your target customer without the use of an advertising middleman. It is a targeted form of marketing that presents...

What is Conversational Commerce? Conversational commerce is a term coined by Uber’s Chris Messina in a 2015 piece published on Medium. It refers to the intersection of messaging apps and shopping. Meaning, the trend toward interacting with businesses through messaging and...

What is a Business Proposal? A business proposal is a document that’s designed to persuade an organization to buy a product or service. A proposal is usually solicited or unsolicited – meaning, that the purchasing company is either actively seeking...

What is Business Operations? Everything that happens within a company to keep it running and earning money is referred to collectively as business operations. Business plans often include a section dedicated to operations so that company founders understand the systems,...

What is Brand Equity? Brand equity is a marketing term that describes a brand’s value. That value is determined by consumer perception of and experiences with the brand. If people think highly of a brand, it has positive brand equity....

What is Barrier to Entry? A barrier to entry is a high cost or other type of barrier that prevents a business startup from entering a market and competing with other businesses. Barriers to entry can include government regulations, the...

What is an Anchor Store? An anchor store is the big department store at the mall. Depending on the size of the shopping center, there’s often more than one and at least two, with one at either end of the...

What is Crowdfunding? Crowdfunding is the process of raising money for a business, project, or charitable cause from many individual donors – the crowd. Today, online platforms like Kickstarter, Indiegogo, and Crowdfunder make crowdfunding easier by serving as virtual matchmakers....

What is Manufacturing? Manufacturing is the making of goods by hand or by machine that upon completion the business sells to a customer. Items used in manufacture may be raw materials or component parts of a larger product. The manufacturing...

What is a Stock Keeping Unit (SKU)? A Stock Keeping Unit (SKU) is a unique identifier assigned to each product in a company’s inventory. This alphanumeric code helps businesses track inventory, manage sales, and streamline various aspects of retail and...

What is a Business License? A business license grants the owner the right to start and run a particular type of business in the city, county, state, or country that issues it. It is a type of permit indicating the...

What is Branding?   Branding is all of the ways you establish an image of your company in your customers eyes. By building a website that describes what you offer, designing ads that promote your goods and services, selecting specific...

What is Sole Proprietorship? A sole proprietorship is a business owned and run by an individual. It is not a legal entity but a description of a type of business, so there are no formal papers to file to create...

What is Enterprise Resource Planning (ERP)? Enterprise resource planning ERP for short, is a comprehensive software platform used to help a business run more efficiently and effectively, by automating core processes. An ERP system can take orders from customers, manage...

Entrepreneurship refers to the process of identifying a business opportunity and creating a new venture to bring a product or service to market. It also describes the study of how individuals design, launch, and manage new businesses. An entrepreneur is...

What is Retail? A retail sale occurs when a business sells a product or service to an individual consumer for his or her own use. The transaction itself can occur through a number of different sales channels, such as online,...

What is Merchandising? Merchandising means all the actions you take to promote and sell your products once customers enter your store. When a customer walks in, your store’s appearance matters. You must present your products in visually appealing ways, because...