71 business terms and definitions for entrepreneurial creators

Every quarter, over 300,000 new businesses are set up in the United States, throwing ambitious entrepreneurs into a new world of business terms and jargon.

This transition can be particularly tricky for creators who, let’s be honest, are usually more excited about making things than making money.

But it’s 2024, and there are now more ways for creators to make money than ever. So to help you get in on the action, I’ve put together a business terms glossary. This is broken down into the key aspects of running a creative company:

• Setting up your business
• Bringing your idea to life
• Building your online presence
• Marketing your business and brand
• Getting paid
• Growing your team
• Ways of working
• Legal jargon

Let’s go!

Setting up your business

When you decide to start a business, the first thing you need to do is decide what type of business you want to create. 

In this section, we’ll look at the basic business terms you need to know to help you make this decision.

1. Freelancing

Working for a business or agency as a contractor without the commitments of full-time employment.

2. Sole proprietorship

A business in the United States that’s owned and operated by one person. The owner is personally liable for the business’s debts and taxes.

3. Sole trader

A business in the United Kingdom that’s owned and operated by one person. The owner is personally liable for the business’s debts and taxes.

4. Limited liability company (LLC)

A business structure in the United States that protects its owners from the company’s debts and liabilities.

5. Corporation

A legal entity in the United States that is separate from its owners. This type of company is governed by state law, provides limited liability, and allows the sale of shares.

6. Limited company

A business structure in the United Kingdom that is legally separate from its owners. This type of company limits the owners’ liabilities to shares purchased or guarantees made to the company.

7. Public limited company (PLC)

A type of limited company in the UK whose shares can be traded on a stock exchange. This type of company is subject to more rigorous reporting and regulations.

8. Partnership

A business structure where two or more individuals manage and operate a business.

Bringing your idea to life

Once you’ve chosen your company type, you’re ready to bring your idea to life. So let’s look at some common business terms to help get your concept off the ground and make it a success.

9. Business plan

A document setting out your business goals, strategies, and financial projections.

10. Market research

The process of investigating your market by speaking to potential customers and learning about your competitors.

11. Unique selling proposition (USP)

The key service, benefit, or value that sets your business apart from the competition.

12. Concept validation

Testing your idea with customers on a small scale to make sure it’s worth your time and financial investment.

13. Bootstrapping

Building and growing a business with little to no external funding or capital. This usually means investing some of your own money to start the business.

14. Minimum viable product (MVP)

The simplest and least-costly version of a product you can create while still satisfying your customers.

Building your online presence

Next up, we’ll look at some important business terms for getting your company online.

15. Domain name

The unique address that you’ll use for your website and any associated email addresses. 

16. Web hosting

A service that makes your website available to customers when they enter your domain in their browser. Two of the most popular options for buying a domain and hosting a website are GoDaddy and IONOS.

17. Online portfolio

A website showcasing your creative work and what you can do for your clients. You can create your own portfolio using sites like Squarespace and Wix.

18. E-commerce website

An online store where customers can browse and buy your creations. You can create your own store on websites like Shopify or Etsy.

19. Responsive design

Designing a website to make sure it looks great on mobile and tablet, as well as desktop and laptop screens. Most online website builders include handy features to make this easy.

20. Content management system (CMS)

A tool for managing the content on your website without needing to be a coding expert. This lets you do things like change text, add images, and post blog articles.

21. Web accessibility

Designing and building your website in a way that can still be used and navigated by people with disabilities. Learn more about web content accessibility.

Marketing your business and brand

Boom! Your company is officially up and running. So let’s look at some important business terms for growth and marketing to help take things to the next level.

22. Target audience

The group of people you feel are most likely to buy your products or services.

23. Call to action (CTA)

The action you want people to take after visiting your website or engaging with your marketing content. This usually takes the form of a button and says something like “Buy now” or “Learn more”.

24. Conversion rate

The percentage of people who take action after engaging with your content. For example: if 1,000 people visit your website and 50 of them click on your CTA, your conversion rate is 5%.

25. Search engine optimization (SEO)

Following a set of strategies and best practices to increase the chances of your website showing up on search engines. For example: if you sell origami animals, you’re more likely to appear on Google if you have lots of content about origami animals on your website.

26. Content marketing

Creating and distributing content that’s valuable to your target audience. This type of marketing usually has the goal of driving awareness and engagement, rather than selling products or services directly.

27. Email marketing

Sending email campaigns to communicate with and nurture your audience. This includes things like newsletters or seasonal discounts.

28. Customer relationship management (CRM)

A strategy for managing relationships with customers throughout the entire customer lifecycle. There are lots of tools to help you with CRM, including Hubspot and Salesforce.

29. Social media marketing

Using social media platforms like Facebook, Instagram, and TikTok to promote your brand and engage with your audience.

30. Partnership marketing

Collaborating with other brands, businesses, or creators in a way that benefits everyone involved. For example: this partnership between Palace and Gucci introduced Palace to a luxury audience while making Gucci seem less stuffy to younger fashionistas. 

31. Affiliate marketing

A strategy where people or companies earn commission for driving traffic or sales for another company’s website.

32. Return on investment (ROI)

A way of measuring the profitability of an investment. To work out your ROI, divide your net profit by the amount you invested. For example: if you spend $500 on a social media campaign and it drives $1,500 in sales, your ROI is 200%.

33. A/B testing

Experimenting with two versions (A and B) of your marketing content to determine which performs better.

34. Google My Business

A free tool from Google that helps you manage your online presence in Google Maps and search.

35. Testimonials and reviews

Quotes, ratings, and reviews from happy customers that help you build trust with new prospects.

36. User-generated content (UGC)

Content created by your audience, like social posts featuring your products.

Getting paid

Whether you’re creating art or articles, you need to make sure you get paid for all your hard work. So let’s look at some business finance terms to help get the money rolling in.

37. Business bank account

A bank account that’s only used for business payments, rather than personal finances.

38. Invoice

A document detailing the products or services you’ve provided and the payment due from your client or customer.

39. Rate card

A page or document setting out the rates you charge for different services or packages of work.

40. Payment terms

The conditions you’ve agreed with your client or customer to outline when and how often you’ll be paid.

41. Net 30/60/90

The number of days a client has to pay your invoice. For example: Net 30 means that the payment is due in 30 days.

42. Late payment fee

A fee your client has to pay if they fail to meet your agreed payment terms.

43. Retainer

An ongoing agreement where clients can secure a set amount of your time, usually monthly.

44. Budget

A financial plan outlining your expected income and expenses.

45. Cash flow

The movement of money into and out of your business.

46. Profit margin

The percentage of your income that represents profit. This can be calculated by deducting your business costs from your income and then dividing the result by your income. For example: if you make $50,000 in a year and your costs are $2,000, your profit margin is 96%.

Growing your team

If your business really takes off, you may need to think about growing your team. So here’s a glossary of business terms related to personnel and people management.

47. Recruitment

The process of finding new people to join your company. This includes everything from putting out job advertisements to running interviews.

48. Onboarding

The process of integrating new employees into your team and setting them up with all the tools, training, and information they need.

49. Human resources (HR)

The department responsible for managing people in your team. This includes recruitment, employee engagement, and compliance with employment laws.

50. Employee engagement

A way of measuring how emotionally engaged your employees are. You can measure engagement with tools like Workleap and 15Five.

51. Company culture

The shared values, beliefs, and practices that shape how people behave at your company.

52. Diversity, equity, and inclusion (DEI)

A set of initiatives and policies for promoting a fair, diverse, and inclusive workplace.

53. Performance review

A formal assessment of an employee’s performance in relation to their goals and role.

54. Professional development

The process of helping your employees to learn new skills. This could be to improve performance in their existing role or to set them up for a future role.

55. Employee recognition

Acknowledging and rewarding employees for their achievements so they feel recognized for their hard work and loyalty.

56. Retention strategy

A plan designed to make employees feel valued, engaged, and happy to continue working at your company.

57. Employee benefits

Extra benefits you offer your employees on top of their salary. This includes things like health insurance, retirement plans, and equipment allowances.

58. Employee wellness program

A set of initiatives to promote a healthy lifestyle for your employees – both mentally and physically.

Ways of working

A big part of building your team is deciding how and where you’ll work together. To help you out, here’s a list of key business terms for different ways of working.

59. Hybrid work

A work arrangement that combines in-office and remote work. This lets your employees split their time between the workplace and other locations.

60. Remote work

A work arrangement where employees can carry out their role from wherever suits them. This could be at home, in a coffee shop, or from a coworking space.

61. Coworking

A shared office space where people from different companies can work alongside each other. This is popular with remote workers who miss the social side of being in an office.

62. Flextime

A flexible work schedule where your employees can choose when to start and end their day. In some cases, this setup will include a period of the day where employees need to be available – for example: between 10am and 3pm. 

63. Asynchronous work

A work style where your team members don’t need to be online at the same time. This allows for more flexibility when hiring people in different time zones.

64. Hot desking

A workplace practice where employees don’t have a fixed desk. They can move around each day and work from wherever they feel most comfortable and productive.

Legal jargon

Last but not least, let’s talk about some legal terms you may need to consider when starting and running your business.

65. Contract

A legally-binding agreement between two or more parties that outlines things like rights, responsibilities, expectations, and payment terms.

66. Force majeure

A clause in your contract that excuses a party from fulfilling contractual obligations due to unforeseen and uncontrollable events.

67. Non-disclosure agreement (NDA)

A contract to prevent confidential information from being shared. This is common in marketing if you need to create promotional content for a product that hasn’t been revealed to the public yet.

68. Intellectual property (IP)

The legal rights over creations of the mind, such as art, stories, and designs.

69. Copyright

A type of IP that gives the owner exclusive rights to their creations. This includes the rights to display, copy, adapt, and distribute the work.

70. Trademark

A symbol, word, or words legally registered to represent a product or company. For example: the Nike Swoosh logo.

71. Business insurance

A policy providing financial protection to your business against various risks. This could include things like reputational damage for one of your clients.

Final thoughts

And breathe.

I hope this list has helped you fill in a few knowledge gaps for your business venture. But if you think something’s missing, I’m more than happy to take this list into the hundreds, so let me know in the comments below!

_{Featured image by David Travis}