Business-Glossar — 66+ Begriffe

A major business that attracts significant foot traffic to a commercial area, benefiting nearby smaller businesses.

The average amount spent per customer transaction. Increasing ATV through upselling is often easier than acquiring new customers.

Creating uncontested market space rather than competing in existing saturated markets.

💡 Blue ocean thinking is especially valuable in saturated urban markets where traditional formats face intense competition.

How your business is perceived relative to competitors. Answers: 'Why should customers choose us?'

The moment when total revenue equals total costs — neither profit nor loss. Knowing your break-even helps set realistic revenue targets and pricing strategies.

The concentration of commercial establishments in a given area. High density means more competition but also more customer draw.

Official permission from local authorities to operate. Requirements vary by business type and jurisdiction.

The percentage of your business's maximum output that is actually being used.

One-time costs for acquiring or upgrading physical assets — renovation, equipment, furniture. Distinct from ongoing operational costs.

💡 In F&B, CAPEX is typically 65-75% of total startup costs. In professional services, it can be as low as 20%.

The net amount of cash moving in and out of your business. Positive cash flow means more money coming in than going out.

💡 Cash flow management is the #1 reason small businesses fail. Even profitable businesses can fail from poor cash flow timing.

The geographic area from which a business draws its customers. Typically defined by travel time rather than distance.

Lease clause that ties your obligation to the presence of specific neighboring tenants, usually an anchor store.

The direct costs attributable to producing the goods sold by your business. Includes materials, direct labor, and manufacturing overhead.

A rental agreement for business property. Key terms: duration, rent escalation, permitted use, and break clauses.

💡 The lease is often the largest single financial commitment. A bad lease can sink a profitable business. Always have a lawyer review.

Local regulations that designate specific areas for commercial activities. Determines what business types can operate where.

Systematic evaluation of rival businesses including strengths, weaknesses, pricing, and market position.

Revenue minus variable costs, showing how much each sale contributes to covering fixed costs and generating profit.

The percentage of visitors who take a desired action (purchase, sign up, book).

The total cost of acquiring a new customer, including marketing and sales expenses.

The total revenue expected from a single customer over their entire relationship with your business.

Net operating income divided by total debt service. Lenders use this to assess your ability to repay loans.

The difference between consumer demand and current supply. Gaps represent opportunities for new businesses.

Statistical characteristics of your target area's population — age, income, education, household size.

The reduction in value of assets over time. For tax purposes, you can deduct depreciation of equipment and renovations.

Comprehensive investigation of a business opportunity before committing. Includes financial, legal, and market analysis.

The number of people passing by or entering a commercial location. High foot traffic correlates with visibility and potential customers.

A contract clause excusing performance obligations due to extraordinary events beyond control (pandemics, natural disasters).

A business model where the franchisor licenses their brand and systems to independent operators for fees and royalties.

💡 Franchising reduces risk (proven model) but limits creativity and typically requires 5-8% of revenue in ongoing fees.

The process of neighborhood transformation where increased investment raises property values and changes demographics.

💡 Gentrifying neighborhoods offer lower initial rents with growth potential, but lease escalation clauses become critical.

A commercial kitchen for delivery-only food businesses. 50-70% lower startup costs than traditional restaurants.

Free Google listing that displays your business in Maps and local search results. The #1 local SEO action.

Revenue minus cost of goods sold (COGS), expressed as a percentage. Indicates how efficiently you produce your product.

💡 F&B businesses target 65-75% gross margins. Retail typically operates at 40-60%. Services can exceed 80%.

Hazard Analysis and Critical Control Points — a food safety management system required for all food-handling businesses.

Visual representation of data density across a geographic area, showing hotspots of activity or opportunity.

Legal rights protecting your brand name, logo, recipes, and proprietary processes.

How quickly inventory is sold and replaced. High turnover = efficient sales; low turnover = potential overstocking.

Search engine optimization focused on location-based searches. Critical for any brick-and-mortar business.

Data-driven analysis of geographic and demographic factors to evaluate business site potential.

When a market has reached its maximum capacity for a product or service. Requires strong differentiation to succeed.

The smallest version of your business that can test market demand with minimal investment.

The percentage of revenue remaining after ALL expenses (COGS, rent, staff, utilities, taxes). The true measure of profitability.

A customer loyalty metric measuring how likely customers are to recommend your business on a scale of 0-10.

A contractual restriction preventing a party from operating a competing business within a specific area and timeframe.

Providing seamless customer experience across all channels — physical store, website, app, social media, and marketplace.

Recurring costs to run your business — rent, salaries, utilities, supplies. Managing OPEX is critical for profitability.

WhereToOpen.ai's proprietary metric (0-100) combining location quality, competition, demand, and financial viability.

The time required to recover your initial investment through business profits. Shorter payback = lower risk.

Point of Sale — hardware and software for processing transactions, managing inventory, and tracking sales data.

The cost of beverage ingredients divided by the selling price. A key metric for bars and restaurants.

💡 Pour cost is the bar industry's equivalent of food cost percentage. Track it weekly to catch over-pouring and theft.

How sensitive customer demand is to price changes. Low elasticity = demand stays stable when price changes.

The zone closest to your business from which you draw 60-80% of customers.

A systematic approach to incentivizing existing customers to bring in new customers.

Monthly rent as a percentage of monthly revenue. A critical metric for location viability.

💡 If your rent exceeds 15% of revenue, the location is likely unsustainable unless you can significantly increase sales.

Total revenue divided by the usable area of your business space. A key efficiency metric for retail and F&B.

The percentage of profit relative to the initial investment. Calculated as (Net Profit / Investment Cost) × 100.

Predictable fluctuations in business tied to seasons, holidays, or events. Critical for cash flow planning.

AI-powered analysis of customer reviews and social media to understand public perception of businesses in an area.

Loss of inventory due to theft, damage, spoilage, or administrative errors.

Total staff costs as a percentage of revenue. Exceeding industry averages signals inefficiency.

Documented step-by-step instructions for routine operations ensuring consistency and quality.

How many times a table is occupied by different parties during a service period.

💡 F&B specific. Optimize by managing reservation times, efficient service, and appropriate table sizes.

The direct revenues and costs associated with a single unit of your business model. Positive unit economics are required for scalability.

How easily potential customers can see your business from the street or main pedestrian flow.

A measure of how walkable a neighborhood is based on proximity to amenities, transit, and pedestrian infrastructure.

The cash needed to cover day-to-day operations before the business becomes self-sustaining.

Local rules dictating what types of businesses can operate in specific areas.