Renaissance for LEADERS

Peak Performance Resources for Leaders by Leaders

Category: Business Page 2 of 3

Loss Leader

A strategy where a product or service is sold at a price below cost, or given away for free to stimulate other sales of more profitable goods or services.

Cash Cow

1. A metaphor for a dairy cow that has calves annually, produces milk daily for life while requiring little maintenance. After the initial capital outlay has been paid off, the cow continues to produce milk and birth more cows that produce milk and more cows for many years. This is an example of an initial investment that grows geometrically over time. The Cash Cow Formula: 1 Cow + 1 Bull + 1 paddock + food + water = an exponential supply of cows and milk. Limited only by the supply of resources (paddock, food, and water.) 2. Products or services that have become market leaders, provide positive cash flow and a return on assets that exceeds the market growth rate. These products produce profits long after the initial investment has been repaid and help to fund company growth, leverage expansion and increase creditworthiness.

Monetize

1. To convert an asset, talent, passion, event, object or transaction into money by selling, licensing, packaging, or using it as security for a loan. Can include any form of currency or something with transferable value; stock, equipment, financial instruments, etc. 2. To convert into a source of cash flow. 3. To express value in terms of money. 4. To establish something as a currency, especially by minting coins. 6. To convert an economy from a barter system to the exchange of money.

Unrecognized Asset

An asset that an individual, team, or business has that they are unaware of or don’t recognize their true value. These assets are not listed on their financial statement or balance sheet and include relationships, customer base, vendors, investors, systems, ideas, know-how, specialized knowledge, marketing strategies, technologies, excess capacity, talent, capability, free time, creativity, written off inventory, custom software, current expenditure, unexplored markets, wasted resources, etc. and ways these assets are valuable to others and can be monetized.

Licensing

Renting or leasing an intangible asset. It is a process of creating and managing contracts between the owner of the asset and a company or individual who wants to use the asset in association with a product, for an agreed period of time, within an agreed territory, for an agreed payment.

Sales

1. The exchange of goods or services for an amount of money or its equivalent; the act of selling. 2. A selling of property to the highest bidder; an auction. 3. An offer or arrangement in which goods are sold at a discount: The store has a sale on winter coats. 3. The business or activity of selling goods or services: She works in sales. 4. The number of items sold or the amount of money received for a number of items sold.

Waste

1. To use, consume, spend, or expend thoughtlessly or carelessly. 2. To cause to lose energy, strength, or vigor; exhaust, tire, or enfeeble. 3. To fail to take advantage of or use for profit; lose. 4. A place, region, or land that is uninhabited or uncultivated; a desert or wilderness. 5. Anything other than the minimum amount of equipment, materials, parts, space and worker’s time which are absolutely essential to add value to the product (Working Definition from Toyota.) 2. Use to no purpose or inadequate result or extravagantly (waste time.)

Supplier

The preceding person in the business flow who delivers an input of product, service or information to the next person (customer) in the flow.

Role

The position, job, or function one holds in a given activity or performance in relation to the other participants. It includes all the duties, rules, and actions of the position.

Quality

1. The essential character of something. 2. A superiority of kind. 3. Degree or grade of excellence.

Page 2 of 3

Previous

Next

Powered by Goldzone & Site by Andrew John Harrison

0