Business Terms You Should Know — But Were Afraid to Ask About
You're on a coaching call with someone you admire, and they casually say, "So what's your LTV compared to your CAC?"
You freeze.
You smile. You nod. You frantically open a new tab under your desk to Google what those acronyms even mean while pretending you're taking notes.
Everyone else in the group seems to understand perfectly. They're nodding along, asking follow-up questions, discussing their own numbers like it's the most natural thing in the world.
And you're sitting there feeling like an imposter who somehow snuck into a room where you clearly don't belong.
Here's what nobody tells you: every single person in that room Googled those exact same terms at some point. The difference is, they've been doing this long enough that the language has become second nature. They're not smarter than you. They're not more "business-minded" than you. They just learned the vocabulary first.
And that's exactly what we're going to fix today.
Why Nobody Explains This Stuff
Let's talk about the elephant in the room: why is business education so full of jargon that nobody bothers to explain?
There's this weird gatekeeping that happens in business spaces where people assume you "should already know" this stuff. Like there's some secret business school everyone attended where they taught you that ROI stands for Return on Investment and what it actually means for your business.
Spoiler alert: most successful entrepreneurs didn't go to business school. They learned this vocabulary the hard way — by feeling stupid in meetings, by Googling frantically, by asking trusted friends what things meant, by piecing it together over years.
The truth is, using jargon without explanation is often about making the speaker feel smart rather than making the listener feel informed. When someone rattles off acronyms without defining them, they're either assuming you know (which excludes anyone who doesn't), or they're trying to establish credibility through complexity instead of clarity.
Both approaches suck.
You don't need an MBA to build a successful business. You don't need to have been born understanding the difference between gross and net profit. You don't need to feel ashamed that you're still learning fundamental business vocabulary.
What you need is someone who will actually explain these terms in plain English so you can participate confidently in the conversations that matter for your business.
The Truth About Business Vocabulary
Here's the permission you need to hear: You're not behind. You're building your foundation.
Every expert started exactly where you are. The entrepreneurs who casually discuss their MRR and conversion rates? They Googled those terms too. The coaches who confidently analyze their client acquisition costs? They had to learn what CAC even stood for.
The difference between where you are now and where they are isn't intelligence or business acumen — it's simply exposure to the language. And here's what's beautiful about that: language is learnable.
Learning this vocabulary isn't just about fitting in on coaching calls or understanding what your business mentor is talking about (though both of those are valuable). It's about unlocking your ability to make informed decisions about your business.
When you understand these terms, you can:
Evaluate whether advice actually applies to your situation
Identify problems before they become crises
Make strategic decisions based on data instead of guesswork
Participate confidently in learning spaces without constantly feeling lost
Know which numbers actually matter for YOUR business stage
Most importantly, understanding business terminology helps you move from "Am I cut out for this?" to "I've got this."
So let's build that foundation. I'm going to walk you through the essential terms you'll encounter as an entrepreneur, explain each one in plain English with relatable analogies, and — most critically — help you understand which ones actually matter for your business right now.
Because here's another truth nobody tells you: you don't need to track everything. You need to track what matters for your current stage and goals.
Section 1: Financial Metrics That Matter
Let's start with the money terms — because at the end of the day, your business needs to generate revenue to be sustainable.
ROI (Return on Investment)
What it stands for: Return on Investment
Plain English definition: How much money you get back compared to how much you put in.
Relatable analogy: Think about grocery shopping. You spend $20 on ingredients to make meals at home that would cost you $60 if you bought them at restaurants. Your "return" on that $20 investment is $40 in value (the $60 worth of meals minus the $20 you spent). That's a positive ROI.
Why it matters: ROI helps you evaluate whether investments in your business are worth it. Should you pay $2,000 for that course? Hire that coach? Buy that software? If the return (additional revenue, time saved, opportunities created) outweighs the investment, it's probably worth it.
This matters most if you: Are making decisions about where to invest money or time in your business. Everything from marketing spend to professional development to tech tools should be evaluated through an ROI lens.
MRR (Monthly Recurring Revenue) & ARR (Annual Recurring Revenue)
What they stand for: Monthly Recurring Revenue and Annual Recurring Revenue
Plain English definition: The predictable income you receive every month (MRR) or year (ARR) from ongoing subscriptions, memberships, or retainer clients.
Relatable analogy: Think about your gym membership. The gym doesn't make money from a single visit — they make money from your $50/month membership that renews automatically every month. That's their MRR. If you stay for a full year, that's $600 in ARR they can predict and count on.
Why it matters: Recurring revenue is the holy grail of business stability because it's predictable. Instead of constantly hunting for new clients or customers, you have a baseline of income you can count on each month. This makes financial planning, hiring decisions, and growth strategies much easier.
This matters most if you: Offer (or are considering offering) subscription services, membership programs, retainer arrangements, or payment plans. MRR tells you your business's baseline stability.
Revenue vs. Profit
Plain English definitions:
Revenue = all the money coming into your business (total sales)
Profit = what's left after you pay all your expenses
The traditional (broken) formula: Most accountants teach: Sales - Expenses = Profit
The problem with that formula: Businesses are run by humans, and humans aren't always logical. When profit is what's "left over," there's rarely anything left. Expenses always expand to consume whatever revenue you have.
Relatable analogy: Let's say you sold $100,000 worth of services last year. That's your revenue — the total money that came in. But you also spent $70,000 on business expenses (software, contractors, marketing, travel, etc.). Your profit is $30,000 — the money you actually get to keep.
But here's what usually happens in reality: You see $100,000 coming in and start spending like you have $100,000. New software subscription? Sure! Hire another contractor? Why not! Upgrade your tech? Absolutely! By the end of the year, you've spent $98,000 and have $2,000 "left over" as profit. You tell people you have a "$100K business" but you're basically broke.
The Profit First approach: Serial entrepreneur Mike Michalowicz flipped the formula to: Sales - Profit = Expenses. Instead of hoping there's profit left over after expenses, you take your profit FIRST, then run your business on what remains.
When profit comes first, it is the focus, and it is never forgotten. You're forced to become more efficient, innovative, and strategic about expenses because you're working with what's available, not what you hope will be available.
Why it matters: This is the single most important distinction to understand because revenue and profit are not the same thing. You can have a "$100K business" and be bringing home less than minimum wage if your expenses are too high. Or you can have a "$50K business" with incredibly low expenses and healthy take-home pay because you prioritized profit from day one.
This matters most if you: Are evaluating the true health of your business, comparing your business to others, or wondering why you work so hard but never seem to have money. When someone talks about their "six-figure business," ask yourself: is that revenue or profit? And more importantly — are they taking profit first or hoping for leftovers?
Gross vs. Net
Plain English definitions:
Gross = before expenses are deducted
Net = after expenses are deducted
Relatable analogy: Your paycheck shows both numbers. Your gross pay is what you earned before taxes and deductions. Your net pay (often called "take-home pay") is what actually hits your bank account after everything is taken out. Same concept in business.
Why it matters: These terms show up everywhere: gross revenue, net profit, gross margin, net income. Understanding that "gross" means "before" and "net" means "after" helps you interpret financial statements and have informed conversations about business health.
This matters most if you: Are reviewing financial reports, working with a bookkeeper or accountant, or trying to understand profitability at different stages of your sales process.
Section 2: Customer Value & Acquisition
These metrics help you understand the relationship between what you spend to get clients and what those clients are worth to your business.
LTV or CLV (Lifetime Value or Customer Lifetime Value)
What it stands for: Lifetime Value (sometimes called Customer Lifetime Value)
Plain English definition: The total amount of money a client will spend with you over the entire time they work with you or buy from you.
Relatable analogy: Think about your favorite coffee shop. Maybe you buy a $5 latte three times a week. That's $15/week, $60/month, $720/year. If you remain a loyal customer for 5 years, your lifetime value to that coffee shop is $3,600. You're not just a "$5 customer" — you're a "$3,600 customer" over time.
Why it matters: LTV helps you understand the true value of acquiring a client. A $500 client might seem small until you realize they stay with you for 3 years and refer 5 other clients. Suddenly that "$500 client" has a much higher lifetime value.
This matters most if you: Are making decisions about how much to invest in client acquisition, evaluating which types of clients are most valuable to your business, or building long-term relationships instead of one-off sales.
CAC (Customer Acquisition Cost)
What it stands for: Customer Acquisition Cost
Plain English definition: How much money (and/or time) you spend to acquire each new client.
Relatable analogy: Think about making friends. Some friendships develop naturally with no "cost" — you meet at work, bond over shared interests, and boom, friendship. Other friendships require more "investment" — you join clubs, attend networking events, put yourself out there in new spaces. The "cost" of friendship might be membership fees, event tickets, time spent in uncomfortable social situations. Same with client acquisition — some clients find you organically (low CAC), others require significant marketing investment (higher CAC).
Why it matters: If it costs you $1,000 in marketing and sales effort to acquire a client who only pays you $800, that's a losing proposition. But if it costs $1,000 to acquire a client with an LTV of $10,000, that's a winning formula worth scaling.
This matters most if you: Are investing in paid advertising, evaluating the effectiveness of different marketing channels, or trying to understand which client acquisition strategies actually work for your business model.
The LTV:CAC Ratio (Why These Two Metrics Work Together)
Plain English explanation: The relationship between how much a client is worth (LTV) and how much it costs to acquire them (CAC).
Why it matters: Healthy coaching and consulting businesses typically aim for an LTV that's at least 3 times higher than CAC — meaning if it costs you $500 to acquire a client, that client should generate at least $1,500 in revenue over their lifetime with you.
This matters most if you: Are scaling your business and trying to determine if your client acquisition strategies are sustainable. If your CAC is too high relative to LTV, you'll go broke even while growing.
Section 3: Business Model Terms
These terms help you understand different types of businesses and how they make money.
B2B vs. B2C
What they stand for: Business-to-Business and Business-to-Consumer
Plain English definitions:
B2B = You sell to other businesses
B2C = You sell directly to individual consumers
Relatable analogy: A restaurant supply company that sells commercial ovens to restaurants is B2B. The restaurant itself that sells meals to individual diners is B2C.
Why it matters: B2B and B2C businesses operate very differently. B2B typically involves longer sales cycles, higher price points, fewer clients, and relationship-driven sales. B2C usually involves shorter sales cycles, lower price points, higher volume, and transaction-driven sales. Knowing which model you have helps you set appropriate expectations and strategies.
This matters most if you: Are setting prices, building your sales process, or evaluating business advice (because what works for B2C often doesn't work for B2B and vice versa).
SaaS (Software as a Service)
What it stands for: Software as a Service
Plain English definition: Software you access online through a subscription instead of buying and downloading once.
Relatable analogy: Netflix is SaaS — you pay monthly to access their streaming service. Microsoft Word used to be a one-time purchase software you installed on your computer; now Microsoft 365 is SaaS — you pay monthly or yearly for access to Word, Excel, and other Office tools online.
Why it matters: If you're using business tools (which you almost certainly are), most of them are SaaS products. Understanding this helps you budget properly (monthly recurring costs instead of one-time purchases) and evaluate whether you're paying for tools you're actually using.
This matters most if you: Are evaluating tech tools for your business or considering building a SaaS business yourself (like membership sites or online platforms).
Evergreen vs. Live Launch
Plain English definitions:
Evergreen = Always available; people can buy anytime
Live Launch = Only available during specific launch windows
Relatable analogy: Amazon is evergreen — you can buy products any day of the year. Black Friday sales are live launches — only available for a limited time, then the doors close.
Why it matters: These are two fundamentally different product models with different marketing strategies, revenue patterns, and energy requirements. Evergreen provides steady, predictable income but requires always-on marketing. Live launches create revenue spikes but come with intense work periods followed by recovery time. This is why many companies combo both approaches with different products, services, and promotions.
This matters most if you: Are designing your product strategy and trying to figure out which model fits your working style, energy patterns, and revenue goals.
DIY, DWY, DFY (Do It Yourself, Done With You, Done For You)
What they stand for:
DIY = Do It Yourself
DWY = Done With You
DFY = Done For You
Plain English definitions: These describe different service delivery models based on how much support you provide.
DIY = You provide the framework, course, or guide; client implements independently
DWY = You and the client work together; partnership-based implementation
DFY = You do it all for the client; full-service deliver
Relatable analogy: Think about home improvement:
DIY = YouTube tutorial showing you how to tile your bathroom (you do all the work)
DWY = Hiring a contractor who works alongside you, teaching you as you go (you work together)
DFY = Hiring a contractor who does everything while you're at work (they handle it all
Why it matters: Each model requires different pricing, time investment, and skill transfer. DIY scales easily but commands lower prices typically. DFY commands premium prices but limits how many clients you can serve without scaling your team significantly. DWY sits in the middle. Most successful businesses offer a mix across these models.
This matters most if you: Are designing your service offerings and trying to balance scalability with income goals, or evaluating which service delivery model fits your capacity and expertise level.
Section 4: Marketing & Sales Language
These terms help you understand how people move from "never heard of you" to "paying client."
Funnel
Plain English definition: The journey someone takes from first discovering you to becoming a paying client, visualized as a funnel or series of funnels because lots of people enter at the top and fewer make it all the way through to purchase.
Relatable analogy: Think about shopping at a mall. Lots of people walk past your store (top of funnel). Some people come in and browse (middle of funnel). Fewer people try things on. Even fewer people actually buy something (bottom of funnel). The funnel shape represents how the number of people decreases at each stage.
Why it matters: Understanding your funnel helps you identify where people are dropping off. Are people finding you but not engaging? Engaging but not buying? Buying once but not returning? Each stage needs different strategies to improve.
This matters most if you: Are trying to grow your business systematically and want to know where to focus your efforts for the biggest impact.
Lead Magnet
Plain English definition: Something valuable you offer for free in exchange for someone's contact information (usually email address).
Relatable analogy: Free samples at the grocery store. They give you a taste of the product hoping you'll like it enough to buy the full package. A lead magnet is your business's free sample.
Why it matters: Lead magnets allow you to build relationships with potential clients before they're ready to buy. Instead of asking for a sale immediately, you offer value first, build trust, and stay in touch until they're ready.
This matters most if you: Are building an email list, creating a sales funnel, or establishing yourself as an expert in your field.
Tripwire
Plain English definition: A low-cost paid offer (usually $7-$47) designed to convert leads into paying customers quickly, making it psychologically easier for them to buy higher-priced offers later.
How it's different from a lead magnet: A lead magnet is free (you're building your email list). A tripwire is a small purchase (you're turning subscribers into buyers). Tripwire offers are typically priced at $5-$50, with the majority being less than $20.
Relatable analogy: Think about Costco's famous $1.50 hot dog combo or McDonald's dollar menu. These aren't designed to make significant profit — they're designed to get you in the door and buying. Once you've purchased the hot dog, you're more likely to grab a pack of toilet paper, a case of water, and that random gadget you didn't know you needed. The hot dog is the tripwire; the other purchases are where the real profit happens.
In your business, maybe someone downloads your free checklist (lead magnet), then immediately sees an offer for a $17 workbook that goes deeper (tripwire). It's low enough that it feels like an impulse buy, but valuable enough that they experience the quality of your work.
Why it matters: The first sale is the hardest to win because it requires a customer to move from passive interest to taking financial action. Even a small purchase creates a psychological shift — they're no longer just a subscriber; they're a customer. Someone who has bought from you once is exponentially more likely to buy from you again.
The goal of a tripwire isn't to make profit on that initial sale. The sole objective of a tripwire is to quickly convert as much traffic as possible into customers, and there's even a possibility you may incur a loss because you're offering a high-quality product at a very low cost. That loss gets recovered when they purchase your core offer later.
This matters most if you: Are building a funnel strategy, have higher-ticket offers you want to sell, or need to convert cold traffic into buyers quickly. Tripwires work especially well for course creators, coaches, and digital product sellers.
Common tripwire examples:
$7-$27 mini-course (sample of your full course content)
$17 workbook or template bundle
$19 "starter kit" or resource package
"Free + shipping" physical products (you give away the product, they pay $7-$12 for shipping)
$47 workshop replay or training session
Conversion Rate
Plain English definition: The percentage of people who take a desired action out of everyone who had the opportunity to take that action.
Relatable analogy: If 100 people visit your website and 5 of them schedule a consultation call, your conversion rate is 5%. If you have 20 consultation calls and 4 people become clients, your consultation-to-client conversion rate is 20%.
Why it matters: Successful coaching and consulting businesses typically see conversion rates of around 20-30% from initial consultation to paid client, but conversion rates vary significantly by industry and what action you're measuring. Understanding your conversion rates helps you identify bottlenecks and set realistic expectations.
This matters most if you: Are trying to improve your sales process, evaluating whether your messaging is working, or determining how much traffic/attention you need to hit revenue goals.
CTA (Call to Action)
What it stands for: Call to Action
Plain English definition: The specific next step you're asking someone to take.
Relatable analogy: At the end of a great conversation with a new acquaintance, someone says, "We should grab coffee sometime!" That's a vague idea. A CTA would be: "Are you free Thursday at 2pm? Let's meet at the coffee shop on Main Street." It's the specific, actionable next step. You’ll also see an example of this at the bottom of this article 😉
Why it matters: People need clear direction. Without a CTA, they might love your content but have no idea what to do next. With a clear CTA, you guide them to the next logical step in your relationship.
This matters most if you: Are creating any kind of marketing content (social media, blog posts, emails, videos) or sales conversations.
Landing Page
Plain English definition: A standalone web page specifically designed to get someone to take one specific action (sign up, purchase, schedule a call, etc.).
Relatable analogy: Think of a landing page like a store window display. The entire display is designed to make you want one thing: come inside. It's not showing you everything the store sells (that would be overwhelming). It's showing you the one thing they really want you to notice right now.
Why it matters: Landing pages convert better than sending people to your general website because they remove distractions and focus on one clear action. Instead of 20 things someone could click on, there's one primary path forward.
This matters most if you: Are running paid advertising, promoting a specific offer, or trying to grow your email list.
Section 5: Operations & Systems
These terms help you understand the infrastructure that keeps your business running.
CRM (Customer Relationship Management)
What it stands for: Customer Relationship Management
Plain English definition: Software that helps you keep track of everyone you interact with in your business — prospects, clients, leads, referral partners — and all your interactions with them.
Relatable analogy: Remember when people used to keep phone numbers written in an address book? A CRM is like that, except it also tracks when you last talked to someone, what you talked about, what they're interested in, where they are in your sales process, and automatically reminds you to follow up. It's your external brain for relationships.
Why it matters: As your business grows, you literally cannot remember everything about every person you've ever interacted with. A CRM helps you track prospects through your sales process and manage relationships systematically so nothing falls through the cracks.
This matters most if you: Have more than a handful of prospects or clients, are trying to grow systematically rather than chaotically, or find yourself forgetting to follow up with people.
SOP (Standard Operating Procedure)
What it stands for: Standard Operating Procedure
Plain English definition: Step-by-step instructions for how to complete a specific task in your business.
Relatable analogy: A recipe is an SOP. If you bake a pie from memory every time, you might make mistakes or forget ingredients. But if you write down the recipe with exact measurements and steps, anyone can follow it and get consistent results. SOPs are recipes for your business processes.
Why it matters: SOPs allow you to delegate tasks, maintain quality when you're not personally doing everything, and ensure consistency in how your business operates. They're essential for scaling beyond just you.
This matters most if you: Are trying to hire help (VA, contractor, employee), want to work less while maintaining quality, or find yourself repeatedly doing the same tasks and wishing someone else could do them.
Pipeline
Plain English definition: A visual representation of where all your prospects are in your sales process, from first contact to closed deal.
Relatable analogy: Think of a pipeline like the stages of a relationship. Some people are in the "just met" stage. Others are in the "going on dates" stage. Some are in the "getting serious" stage. And hopefully, some get to the "committed relationship" stage. Your sales pipeline shows you where every prospect is in their journey toward becoming a client.
Why it matters: Tracking your pipeline helps you identify how many prospects you need at each stage to hit your revenue goals It prevents the feast-or-famine cycle because you can see in advance when you need to generate more leads.
This matters most if you: Are trying to create predictable revenue, manage your sales process systematically, or understand why you have revenue inconsistency.
Great resource: I wrote another article for my tech company, FableForge Suite, that details how to create your first pipeline. You can read that for more details: https://fableforgesuite.com/post/your-first-crm-pipeline-setup-guide-fableforge
ESP (Email Service Provider)
What it stands for: Email Service Provider
Plain English definition: The software you use to send marketing emails, newsletters, and automated email sequences to your audience.
Relatable analogy: You wouldn't send personal emails to hundreds of people using your Gmail account (that would trigger spam filters and be a nightmare to manage). An ESP is like a professional mail carrier specifically designed to handle business email at scale.
Why it matters: If you're building an audience or staying in touch with prospects and clients through email, you need an ESP. These platforms handle the technical stuff (deliverability, compliance, automation) so you can focus on writing valuable content.
This matters most if you: Are building an email list, using email marketing as part of your strategy, or want to automate parts of your communication with prospects and clients.
Resource: My other company, FableForge Suite, is a great all-in-one platform for entrepreneurs that includes an ESP service built in.
KPI (Key Performance Indicator)
What it stands for: Key Performance Indicator
Plain English definition: The specific metrics that tell you whether you're making progress toward your most important business goals.
Relatable analogy: If you're training for a marathon, you don't track every single statistic about your training. You focus on key indicators: weekly mileage, pace improvement, longest run distance. These KPIs tell you if you're on track. Same with business — you pick the 3-5 metrics that actually indicate whether you're moving toward your goals.
Why it matters: The only metrics entrepreneurs should invest energy in collecting are those that help them make decisions. KPIs help you cut through the noise and focus on what actually matters for your specific business and goals.
This matters most if you: Feel overwhelmed by data, aren't sure what to measure, or want to make more strategic decisions based on real information rather than gut feeling.
Which Metrics Should You Actually Track?
Here's where we need to talk about something important: not all metrics are created equal.
There's a crucial distinction between vanity metrics and actionable metrics that every entrepreneur needs to understand.
Vanity Metrics are numbers that look impressive but don't actually help you make business decisions or indicate real growth. They may look impressive on the outside but don't reflect actual business performance.
Examples of vanity metrics:
Total social media followers (meaningless if they don't engage or buy)
Website page views (meaningless if bounce rate is 90%)
Email list size (meaningless if open rates are 5% and nobody clicks)
"Engagement" without context (that viral post about someone's injured cat got lots of comments, but did it advance your business?)
Actionable Metrics are numbers that directly connect to business decisions and outcomes. They enable you to align your efforts around the most important metrics to meet business objectives.
Examples of actionable metrics:
Conversion rate (tells you if your messaging is working)
Client acquisition cost vs. lifetime value (tells you if your business model is sustainable)
Revenue per client (tells you if you're pricing appropriately)
Client retention rate (tells you if you're delivering value)
Here's the trap: it's easy to focus on vanity metrics because they make you feel good. "Look, 1,000 people viewed my post!" sounds impressive. But if zero of those people took any action, that metric didn't help your business.
The key question to ask about any metric: "Can this information help me make a business decision or take meaningful action?"
If the answer is "I don't know" or "not really," it's probably a vanity metric.
Additionally, it’s better to track metrics you can influence directly. For example, you might be tempted to set a goal like “close 3 clients” but you can’t control if people will buy or not. So instead, track the thing that you think would lead to closing clients — like the number of meaningful conversations with potential clients.
What to Track by Business Stage
The metrics that matter change depending on where you are in your business journey.
Pre-Revenue / Just Starting (Focus: Validation)
Number of meaningful conversations with potential clients
Pain points you're hearing repeatedly
Conversion rate from conversation to interest
Time to create and deliver your offer
Why these matter: At this stage, you're validating that people actually want what you're offering. Revenue matters less than proof of concept. Track things that tell you whether you're solving a real problem for real people.
Early Stage: $50K-$200K Revenue (Focus: Consistency)
Monthly revenue (is it growing or fluctuating wildly?)
Client acquisition cost
Conversion rate from consultation to client
Number of sales conversations per month
Client satisfaction/results
Why these matter: You've proven the concept; now you need to make it consistent. Track metrics that help you understand if your business model is sustainable and whether you're spending time on the right activities.
Established: $200K+ Revenue (Focus: Optimization & Scale)
All of the above, plus:
Lifetime value of a client
Profit margin (revenue is great, but are you keeping enough?)
Client retention and referral rates
Revenue per client/project
Time investment per revenue dollar
Why these matter: You're no longer just surviving; you're optimizing for profitability and sustainable growth. Track metrics that reveal operational efficiency and help you understand which client types and service offerings are most valuable.
The Danger of Tracking Too Much
Here's something nobody talks about: tracking too many metrics is just as dangerous as tracking none.
When you try to monitor 20 different KPIs, you end up:
Paralyzed by data instead of making decisions
Spending more time analyzing than actually building your business
Creating overwhelm that prevents action
Losing sight of what actually matters
The sweet spot? Choose 3-5 actionable metrics that align with your current business goals Medium.
For most coaches and consultants in the early-to-mid stages, that usually means:
Monthly revenue (are you growing?)
Number of sales conversations (are you talking to enough people?)
Conversion rate (is your messaging resonating?)
Client satisfaction (are you delivering results?)
Profit margin (are you keeping enough?)
That's it. Five numbers that tell you the health of your business.
You can always add more sophisticated metrics later. But if you're drowning in data right now, simplify ruthlessly. Pick the 3-5 numbers that would actually change your behavior if they went up or down.
From Confused to Confident
Remember that coaching call at the beginning of this article? The one where everyone was casually discussing LTV and CAC while you frantically Googled under your desk?
Here's what that conversation looks like after you understand the vocabulary:
Your coach asks, "So what's your LTV compared to your CAC?"
And you actually know what they're asking. You've been tracking this. You can participate in the conversation.
"My client acquisition cost is around $400 when you factor in my marketing time and paid ads. Average client lifetime value is about $2,500 right now — most clients work with me for 6 months and spend around $2,500 total during that time. So my ratio is a little over 6:1, which feels sustainable."
No panic. No pretending. No impostor syndrome spiral.
Just confident participation in a business conversation because you understand the language.
That's what happens when you learn business vocabulary. You don't just "sound smarter" (though you will). You unlock your ability to make informed decisions, evaluate advice critically, and participate in the learning spaces that will grow your business.
You move from feeling like you're constantly playing catch-up to feeling like you actually know what you're doing.
And here's what's beautiful: once you learn these foundational terms, everything else starts clicking into place faster. Marketing advice makes more sense. Business books become more useful. Coaching calls become more valuable.
Because you're not spending all your mental energy decoding language — you're actually absorbing concepts.
Your Next Steps
You've just learned 20+ essential business terms that will serve you throughout your entire entrepreneurial journey. You now understand the difference between vanity metrics and actionable ones. You know which metrics to focus on for your current business stage.
So what do you do with this knowledge?
First, bookmark this article. You're not going to remember everything immediately, and that's okay. Come back to this whenever you encounter a term you need clarification on.
Second, pick 3-5 metrics to start tracking this month. Not 20. Not "all the things." Just the 3-5 numbers that will actually help you make better decisions for your current business stage and move the needle in a meaningful way.
Third, practice using these terms in conversation. It feels awkward at first, but the fastest way to internalize vocabulary is to use it. Next time you're on a coaching call or networking conversation, try using one of these terms naturally. "I've been tracking my conversion rate..." or "My client acquisition cost has been higher than I'd like..."
Fourth, give yourself permission to still be learning. You're going to encounter more terms. You're going to forget definitions. You're going to need to Google things. That doesn't mean you're not cut out for entrepreneurship — it means you're still building your foundation.
And finally, join spaces where this vocabulary is used regularly and explained generously. My BLUEprint Business Lab is designed specifically for entrepreneurs like you — people who are building successful businesses while still learning the fundamentals. We break down concepts in plain English, no question is too basic, and you'll never feel stupid for asking.
Every week, we have momentum calls where we discuss these exact concepts in real-world contexts. You'll hear other entrepreneurs asking the same questions you have. You'll see how terms apply to actual business decisions. You'll build confidence through exposure and practice.
Join the free BLUEprint Business Lab community at bpbizlab.com and get access to:
Weekly momentum calls where we discuss business concepts in plain English
The complete BLUEprint framework that uses these terms in practical application
A community of entrepreneurs who value understanding over pretending
Direct access to me for questions and clarification
Because here's the truth: you're not supposed to know everything already. You're supposed to be learning, building, and growing your understanding as you go.
Welcome to the conversation. You belong here.
