Contributed capital, also known as paid-in capital, refers to the total value of cash and other assets that shareholders have directly invested in a company in exchange for stock. This equity portion represents funds that are raised and used for the growth and operational needs of the business.
Critical mass refers to the size or scale at which a business activity acquires self-sustaining viability.
A business growth strategy where a company utilizes existing equipment to produce new products with minimal addition of materials.
An increase in the sales capabilities of a company, often necessary to meet new competitive demands or to open new markets. Expansion can also be the result of high profits, which provide the capital base for increasing the size of the business.
Financial gearing, also referred to as leverage, is the degree to which a company utilizes borrowed money or debt to finance its operations and growth.
Internal expansion involves the growth of a company's assets that is funded through internally generated cash or through methods such as internal financing, accretion, or appreciation.
The life cycle refers to the stages a firm or its product passes through, such as development, growth, expansion, maturity, saturation, and decline. Unlike certain staple products, most new products follow this progression.
Market research involves exploring the size, characteristics, and potential of a market to identify consumer needs and preferences, usually before developing a new product or service.
A marketing strategy is a comprehensive plan designed to promote products or services to target customers effectively, increasing brand awareness, sales, and customer loyalty.
A one-time buyer is a customer who has made only one purchase from a retailer or service provider and has not returned for subsequent transactions. Understanding one-time buyers is crucial for businesses aiming to increase customer retention and repeat sales.
Plow back refers to the practice of reinvesting a company's earnings back into the business rather than distributing those profits as dividends to shareholders. Typically employed by smaller, fast-growing companies, plow back is a strategy aimed at fueling further growth and expansion.
Pyramiding refers to various financial and business strategies, both legitimate and fraudulent, that involve the use of financial leverage, excess distribution chains, or dealership networks designed for growth rather than product utility.
Research and Development (R&D) refers to the investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures. Key components are innovation and technological advancements.
Retained earnings refer to the portion of a company's profit that is held back and not distributed to shareholders as dividends. These earnings are reinvested in the business for growth, debt reduction, or other corporate purposes.
The sales function is the section of an organization responsible for selling its products and services. It plays a critical role in driving revenue and maintaining business growth by managing customer relationships, identifying sales opportunities, and closing deals.
Snowballing in business refers to a situation in which business activity rapidly increases and builds momentum, often leading to exponential growth.
Vertical specialization refers to the delegation of responsibilities and duties to others within the same line of authority in an organization. This happens as organizations grow more complex, necessitating the involvement of additional personnel to manage increasing workloads.
