Jargons
Additionality
A way of measuring the benefits of a projects activities which highlights the changes brought about, which wouldn't have occurred, if the project hadn't taken place.
Assets
Anything owned by the enterprise having a monetary value; such as fixed assets (buildings, machinery, equipment and vehicles); intangible assets (trade marks and brand names); and current assets (stock, debtors and cash).
Balance sheet
A balance sheet is a statement of the assets and liabilities of a business at a particular date. It has two parts:-
1) A statement of fixed assets, current assets and current liabilities - total assets less current liabilities is generally referred to as net assets;
2) A statement of how net assets have been financed.
The balance sheet can be analyzed to show how a business is performing in terms of its liquidity, solvency, stability and efficiency.
Baseline
A measurement of the starting conditions, for example numbers unemployed, before a programme is undertaken. The benefits of a programme can be assessed over time by comparing the baseline figures with more up to date figures.
Benchmarking
A method used by organisations for comparing themselves (in terms of efficiency, effectiveness etc) to other organisations.
Break-even point
The level of activity at which total revenues equal total costs, in other words when the enterprise is neither making a loss nor a profit.
Business Plan
A written plan setting out what an organisation intends to do over the coming period of time and what money and resources it will need in order to do it. Not only is a business plan a complete description of a business and its plans for the future.
Capacity building
a term commonly used when a project is likely to improve the ability of communities to take the lead in their own social and economic renewal. This helps organisations to develop their resources (people, buildings, equipment) so that they are better able to meet their aims. Activities aim to increase the capacity of voluntary and community organisations and can include training, advice, specialist expertise.
Capital
The total resources invested and left in the enterprise by its owners.
Capital expenditure
one-off purchases, normally refers to equipment and buildings.
Cash flow forecast
this is an essential financial planning tool- a forecast of money going into and out of a business over a specific period of time. This determines what level of funding is required and whether the business is likely to be viable and able to sustain itself.
Co-operative
structured and run in accordance with the seven international co-operative principles: voluntary and open membership; democratic member control; economic participation by members; autonomy and independence; education, training and information; co-operation among co-operatives; and concern for community. A key feature of co-operative is ownership and control by members.
Community Interest Company (CIC)
a new legal form for social enterprises. This structure will combine the features of a company with some elements from charitable organisations with a lock on assets to prevent them being sold off for private gain and strict regulation.
Company limited by guarantee (CLG)
a registered company with members rather than shareholders; members guarantee a nominal sum for paying liabilities in the event of insolvent liquidation.
Company limited by shares
a registered company which is controlled by its shareholders. Shares may be privately held, or in the case of a public company, shares may be available to trade on the open market.
Core Costs
An organization’s central costs including administration, rent and some staff salaries.
Cost-plus pricing
This method involves working out the cost of the producing a product or service and adding a 'mark-up', this is an extra amount, usually a fixed proportion, to arrive at the selling price.
Creditor
A person/organization to whom money is owed for goods and services.
Depreciation
The method used to allow for wear and tear of capital items. The duration of the depreciation period approximates the useful life of the asset. Commonly used methods of depreciation include straight-line depreciation (this writes off the same amount each year until the capital item is considered to be scrap value). The reducing balance method is calculated as a percentage of the residual value of the capital items each year.
Direct/Variable Costs
These costs are directly related to 'producing' the product or service.
Double bottom line
This is ultimate benchmark for a social purpose business venture- the venture must simultaneously deliver both a financial and social return.
E-marketing
It refers to the use of digital technologies to help sell goods or services. Benefits include global reach, lower cost, traceable results, 24 hour marketing and a competitive edge (if done professionally and efficiently).
Evaluation
An assessment, after a project or programme has started, of the extent to which objectives have been achieved, how efficiently they have been achieved, and whether there are any lessons to be gained for the future.
Feasibility study
It is a project that would identify whether a certain action should be carried out or not, and to help identify the best course of action. Funders may want proof - or at least good evidence- that a large project is feasible before investing large sums of money in it.
Financial return on investment (FROI)
the part of the 'double bottom line' concerned with the cash flow, profitability, balance sheet and other financial results necessary for a business to succeed. The necessary results will differ depending upon the type of business and the desired results may be substantially different for a social purpose business venture. See also Social return on investment (SROI) below.
Financial Sustainability
The ability of an organization to pursue its mission indefinitely through all or a range of the following: earned income, charitable contributions and funding.
Fixed assets
Assets held for use by the enterprise rather than for sale or conversion into cash, for example buildings, machinery, equipment and fixtures and fittings.
Fixed Costs/Overheads
These are costs which are incurred in the general running of the business. Examples include: rents/rates, office supplies, advertising, insurance, telephone, vehicle running costs.
Gross profit
This is the difference between sales income and the direct cost of those sales. The sales income figure for a particular period will include all sales during that period, even if no payment is likely to have been made. In other words, the figure will be based on the total value of invoices issued rather than payments received.
Input tax
VAT added to the net price of inputs (i.e. purchases).
Liquidity
The ability of an enterprise to pay its own debts.
Long-term liabilities
Liabilities that do not have to be paid within twelve months of the balance sheet date.
Market failure
A situation where barriers prevent the normal and efficient operation of a local economy. These may be information barriers, where local people don't know about job vacancies nearby, or the negative impact that high crime levels have on firms and workers locating to a particular area.
Market led pricing
setting a price which is based on factors in the market place. Market led pricing focuses on what competitors are charging and the customer's perception of the product or service.
Market push/market pull
an organisation will be trying to push itself into the market if it starts with its current products and services and then tries to find somebody who is willing to pay for them. This has a weaker foundation than if the organisation starts with its potential customers, discovers what they need and then builds it. Thus the customers will pull the organisation into the market.
Market-led pricing
Market-led pricing focuses on what competitors are charging and the customer's perception of the product or service. Competitor's prices should be used to set a bench mark price.
Match funding
The process by which certain funders will only fund a percentage of the total costs of a project (e.g. 50%) and require the remainder to be matched with income from other funders or in-kind donations.
Milestones
key events with dates, marking stages in the progress of a project or programme.
Mission statement
a simple statement which briefly describes the nature of an organisation, clearly setting out why it exists, its ethics and what it does in readily understood and remembered terms.
Net assets
Total assets (fixed and current) less current liabilities and long-term liabilities.
Net Loss
Where the cost of goods sold plus expenses is greater than the revenue.
Net profit
Where sales revenue plus other income (such as rent received) exceeds the sum of cost of goods sold plus overheads.
Objective
the activities or means by which aims are achieved.
Outcomes
Outcomes measure the longer term changes in an area that were brought about by the regeneration programme.
Outputs
outputs measure what was directly produced by the regeneration programme, such as additional training places or more houses.
Overdraft
A facility granted by a bank that allows a customer holding a current account with the bank to spend more than the funds in the account. Interest is charged daily on the amount of overdraft on that date and the overdraft is repayable at any time on demand by the bank.
Partnerships
these vary greatly in how they are established and resourced and how they operate. There are no defining features for partnerships but they should bring together representatives from different sectors and different communities of interest to agree and work towards common goals. Organisations which bring together representatives of those who have an interest in the local area such as local authorities, health trusts, businesses, voluntary organisations, and residents groups.
PQASSO
Practical Quality Assurance System for Small Organisations: a method of monitoring the internal systems and procedures of an organisation.
Procurement
the process by which public sector bodies purchase services from both private and voluntary sector organisations. Central Government is increasingly interested in local authorities and other agencies procuring services delivered by voluntary organisations instead of delivering those services directly.
Profit and Loss statement
This statement shows how well the enterprise has performed in terms of profit in its trading activities. Along with the cashflow and balance sheet, it is one of the principal measuring and reporting tools.
Sales Forecast
A sales forecast sets out your monthly sales target for the year.
Self-sufficiency
the ability of an organisation to pursue its mission indefinitely through earned income alone without relying on any other received income.
Sensitivity analysis
Where volumes and amounts are altered in order to see what would happen to forecasted outcomes.
Share capital
Share capital or 'equity' is about an individual or organisation taking a stake in a venture as opposed to receiving funding from grants or loans.
Social accounting
the process whereby the organisation collects, analyses and interprets descriptive, quantitative and qualitative information in order to produce an account of its performance.
Social audit
the process of reviewing and verifying the social accounts.
Social capital
the value of social connections and quality social relationships. These non-financial resources - such as trust, partnership, shared values - enable a community to thrive and function more effectively.
Social Economy
this refers to the whole of the ‘not for personal profit’ and mutual aid sector. It includes community owned businesses, local self help organisations engaged in trading activities with social, economic or environmental benefit on a ‘not for private profit’ basis, ‘public good’ purpose trusts, co-operatives, credit unions, mutual societies and non-trading organizations aimed at supporting local development. The term is used to link in with economic regeneration thinking rather than referring to any particular values or expertise that an organisation may bring. There is an intentional link with the international term ‘economie sociale’ which is preferred to the term ‘Third Sector’.
Social enterprise
a business venture designed to directly address a specific social problem and simultaneously make a profit.
Social profit
this is the benefit, returns or gains achieved by social objectives that increase human, social and environmental capital.
Social return on investment (SROI)
the non-financial returns sought by a social entrepreneur. These returns will vary depending upon the type of business activity. They could include the number of jobs created, the average salaries paid, the number of people served, the number of new products or services developed, the number of transfer payments eliminated, and so on.
Stakeholder
people or organizations who have a stake in an organisation, or an interest in a service or issue. These are people who affect and are affected by the organisation.
SWOT
a method of considering the strategic direction of an organisation by compiling a list of its Strengths, Weaknesses, Opportunities and Threats.
Triple bottom line
when an organization produces an annual report covering financial, environmental and social performance giving equal weight and importance to each aspect.
No comments:
Post a Comment