Imagine you’re a freelance graphic designer. A 1099 is like a special form that tells the government how much money you earned from a company that hired you for a design project. It’s different from getting a regular paycheck because you’re not an employee of the company.

You’ll use the 1099 to report your income when you do your taxes. The company that hired you will also send a copy of the 1099 to the government.

Accounts Payable (AP) acts as a business’s short-term IOU, representing the money owed to suppliers for goods or services received on credit. Recorded as a current liability on the balance sheet, AP reflects a company’s outstanding obligations and serves as a crucial metric for managing cash flow and supplier relationships. Efficiently processing and paying AP invoices ensures a business maintains a good credit reputation and avoids late payment penalties.

Accounts Receivable (AR) represents the money owed to a business by its customers for goods or services sold on credit. Essentially, it’s the flip side of Accounts Payable, reflecting the income a company expects to receive in the near future. Managing AR effectively, including tracking outstanding invoices and implementing efficient collection strategies, is vital for ensuring a healthy cash flow and minimizing bad debt.

Imagine you own a car wash. Backstock is like extra supplies you keep on hand, like soap, wax, and paper towels. It’s important to have backstock so you don’t run out of supplies and have to close down your car wash.

It’s like having a secret stash of cleaning supplies to make sure you can keep washing cars, even if you get really busy.

A budget serves as a financial roadmap for a business, outlining expected income and expenses over a specific period. By creating a budget, businesses can allocate resources effectively, track spending against goals, and identify areas for cost savings or revenue growth. Regularly monitoring and adjusting the budget helps businesses maintain financial discipline, adapt to changing circumstances, and achieve their financial objectives.

Imagine you’re starting a tutoring business. Business credit is like a special report card just for your tutoring business. It shows other businesses, like the ones that sell you tutoring materials or computers, how good you are at paying your bills on time.

If your business credit is good, it’s like having straight A’s! You’ll be able to borrow money or buy things for your business more easily. It’s like getting a better allowance for your tutoring business!

But if your business credit isn’t so good, it’s like having some bad grades. Other businesses might not want to lend you money or give you the best deals.

So, it’s important to pay all your bills on time for your tutoring business to build good business credit. Think of it like studying hard to get good grades – it pays off in the end!

In a business, the business model is the overall plan for how the business will create and capture value. Imagine you have a side hustle making friendship bracelets. Your business model is like your overall plan for how you’ll make money. This includes things like what kind of bracelets you’ll make, how much you’ll charge, and how you’ll sell them. 

Business-to-business (B2B) refers to a type of transaction or relationship in which one business sells products or services to another business. This differs from business-to-consumer (B2C) transactions, where businesses sell products or services directly to individual consumers.

B2B transactions often involve larger quantities and higher price points than B2C transactions. They may also involve longer and more complex sales cycles, as businesses may need to conduct extensive research and negotiations before making a purchase.

There four main categories of B2B transactions:

• Business To Producer
• Business To Reseller
• Business To Government
• Business To Institution

Examples of B2B transactions include a manufacturer selling raw materials to a production company, a software company selling software licenses to a large corporation, or a consulting firm providing services to another business. B2B transactions are a critical part of many industries and are often the backbone of supply chains.

Business-to-consumer (B2C) refers to a business model in which a company sells its products or services directly to consumers. This differs from a business-to-business (B2B) model, where a company sells its products or services to other businesses.

In a B2C model, the focus is on the individual consumer and their needs and preferences. Companies that use a B2C model often have a wide variety of products or services that are marketed to a broad audience and are sold through various channels, such as online stores, physical retail stores, or through third-party sellers.

Examples of B2C businesses include retailers, e-commerce companies, and service providers, such as restaurants, salons, and fitness centers.

B2C businesses often have to contend with a high level of competition, as they are often selling to a large and diverse group of consumers. As such, they need to focus on differentiating their products or services and creating a strong brand and customer experience to stand out in the market.

Cash flow, the lifeblood of a business, measures the movement of cash in and out of a company over a specific period. Positive cash flow indicates more money coming in than going out, signifying financial solvency and the ability to meet ongoing obligations. Conversely, negative cash flow can signal financial strain and the need for improved management of expenses or revenue generation. Understanding and managing cash flow is essential for any business to ensure smooth operations, make strategic investments, and achieve long-term financial stability.

Cost, the foundation for pricing strategy, refers to the monetary value of resources used to produce goods or services. These resources can include raw materials, labor, rent, marketing expenses, and anything else a business needs to function. Understanding and managing costs effectively is essential for businesses to set competitive prices, maximize profit margins, and ensure financial sustainability.

A CRM, or customer relationship management system, is a software tool that helps businesses manage and analyze customer interactions and data throughout the customer lifecycle. The goal of a CRM system is to improve customer relationships and drive sales growth by providing businesses with a centralized, organized view of customer interactions and data.

A CRM system typically includes features such as a customer database, sales and marketing tools, and customer service and support tools. It may also include features such as lead and opportunity tracking, email and social media integration, and analytics and reporting.

CRM systems can be used by businesses of all sizes, and they are especially useful for companies that have a large customer base or that rely on customer relationships to drive sales. By using a CRM system, businesses can better understand their customers, identify and target new sales leads, and improve customer satisfaction and loyalty.

Overall, a CRM system is a valuable tool for businesses that want to manage and improve their customer relationships and drive sales growth.

E-commerce is one of the most important business basics. Without a good understanding of E-commerce, it is most likely that a business could fail over the next decade. E-commerce, short for “electronic commerce,” refers to the buying and selling of goods and services over the internet. It includes a wide range of activities, such as online shopping, electronic banking, and online auctions. E-commerce allows consumers to purchase products and services from businesses and organizations around the world, using their computers or mobile devices. It has become an increasingly popular way to shop, with many people preferring the convenience and ease of shopping online to visiting physical stores. E-commerce has also revolutionized the way businesses sell their products, as they can now reach a global audience through their online stores.

Before defining what an entrepreneur is, it is important to define what an entrepreneur is not. Entrepreneurs are not get rich quick artists or people simply just avoiding a 9-5 job. Entrepreneurs are not afraid to work long hours, take responsibility or face scrutiny. Most importantly of all, entrepreneurs are not people that give up!

Entrepreneurs are individuals who identify and pursue business opportunities. They are often characterized by their willingness to take risks and their ability to think creatively and strategically. They mainly develop these skills like creative and strategic thinking through reading books and learning other core business basics. 

Entrepreneurship is the process of starting and running a business, which typically involves identifying a need or opportunity, developing a plan to address that need or opportunity, and then bringing that plan to fruition. This often involves finding and managing resources such as funding, labor, and materials, as well as marketing and selling the product or service.

Entrepreneurs are driven by a desire to create something new and innovative, and to bring value to their customers and the world. They are often motivated by the potential to create wealth and financial independence, as well as the satisfaction of building something from the ground up.

Overall, entrepreneurship is a dynamic and challenging field that requires a combination of creativity, strategic thinking, and hard work. It can be rewarding for those who are willing to take on the risks and challenges that come with starting and running a business.

In a world where everyone has high ambitions of being an entrepreneur, influencer, business owners or legendary stock trader, the Hustler’s library likes to create an environment that promotes true entrepreneurship. True entrepreneurship takes heart, consistency, a solid plan and solid resources. Before you begin any entrepreneurial path its most important to DO YOUR RESEARCH!

Imagine your side hustle is making homemade dog treats. A grant is like winning free money from a contest for having the best dog treats in town! You could use the money to buy more supplies, like special ingredients or fancy packaging. In the real world of business, a grant is like free money given to a business by a government, organization, or foundation. Businesses apply for grants to get money to fund their ideas or projects. Grants are usually given to businesses that have a positive impact on the community, like helping the environment or providing jobs. The cool thing about grants is that you don’t have to pay the money back! But you usually have to follow specific rules about how you spend it, like using it for the project you applied for.

Interest is the fee you pay a lender for letting you borrow their money. Imagine your side hustle is borrowing money from your friend to buy supplies for your dog walking business. It’s kind of like a thank you for helping you out! In a business, interest can be paid on money borrowed from a bank or lender. The interest rate is a percentage of the loan amount that you pay back over time. So, the higher the interest rate, the more you’ll owe on top of the money you borrowed.

Imagine you’re running a lemonade stand. Inventory is all the stuff you need to make and sell lemonade, like lemons, sugar, cups, and maybe even those cute little paper umbrellas! In a business, inventory is everything they have on hand to sell to customers. This could be toys at a store, ingredients at a restaurant, or even the t-shirts a band might sell at their concerts. Basically, it’s all the supplies and things a business keeps ready for their customers.

An investor is a person or entity that puts money into a business, with the expectation of making a profit through the growth of the company or the return on their investment. Investors can take many forms, such as individual shareholders, venture capital firms, or private equity firms. They provide capital to businesses in exchange for ownership stakes or other forms of compensation, such as dividends or interest payments. Investors typically conduct thorough research and analysis before deciding to invest in a company, and they may also offer guidance and support to help the business succeed. The goal of an investor is to maximize their return on investment, either through the appreciation of the company’s value or through regular payments from the company’s profits.

A Key Performance Indicator (KPI) is a measurable value that translates a business strategy into actionable metrics. KPIs track progress towards specific goals and provide insights into a company’s overall performance. By monitoring and analyzing KPIs, businesses can identify areas for improvement, make data-driven decisions, and ensure they’re on track to achieve their objectives.

Imagine you own a car wash. A loss leader is like offering super cheap car washes to get people to come to your business. You might even lose money on each cheap car wash, but you hope that people will come back and buy more expensive car wash packages or extra services like waxing or detailing.

It’s like offering a really good deal on one thing to get people in the door, hoping they’ll spend more money while they’re there.

Imagine you have a lemonade stand. Your profit margin is like the amount of money you keep from each glass of lemonade you sell after paying for the lemons, sugar, cups, and ice.

If you sell a glass of lemonade for 50 cents and it costs you 20 cents to make, your profit margin is 30 cents. That means you keep 30 cents for every glass you sell.

A high profit margin is like having more money left over to buy new supplies or save for a bigger lemonade stand!

In short, your margin is the amount of profit you keep.

Imagine you own a food truck with a secret recipe for a special sauce. An NDA is like a promise that you make someone sign before they learn the secret recipe. It says that they can’t tell anyone else about the special sauce.

It’s like a secret handshake that only people who know the recipe can share.

Imagine your side hustle is making and selling customized phone cases. Normally, you might need to save up your own money to buy things like blank cases, paint, and decorations. But with OPM, it’s like borrowing money from your friend to buy those supplies. You use their money (Other People’s Money) to grow your business faster! In the real world of business, OPM refers to using borrowed funds to finance business ventures. This could be a loan from a bank, money from investors, or even credit cards. Businesses use OPM to grow faster, take on bigger projects, or even launch entirely new ideas without having to wait to save up all the money themselves. There are risks involved with OPM, though. Just like you’d need to pay your friend back for borrowing money for supplies, a business using OPM needs to pay back the loan (with interest) or give the investor a share of the profits.

Imagine you’re starting a photography business and need a loan to buy new camera equipment. A personal guarantor is like someone who promises to pay back the loan if your photography business can’t. It’s like having a safety net for the bank.

Usually, it’s a friend or family member who believes in your photography skills and is willing to take on the risk if your business doesn’t succeed.

Profit, the lifeblood of any business, represents the financial gain remaining after subtracting all expenses from total revenue. There are two main types of profit: gross profit, which reflects the money earned after deducting the direct costs of producing goods or services, and net profit, which is the final figure after factoring in all operating expenses and taxes. Maximizing profit is a key objective for businesses, as it allows for reinvestment, growth, and financial stability.

A request for proposal (RFP) is a document that invites vendors or suppliers to submit a proposal for a specific product or service. It is typically used in the procurement process when a company or organization wants to purchase a product or service and wants to evaluate the proposals of different vendors or suppliers before making a decision.

RFP’s are most typically used in business to business transactions between corporations, professionals and other entities. Even governments use the RFP to work with businesses and other countries. 

The RFP typically includes detailed information about the product or service that the company is seeking, as well as any requirements or specifications that the proposal must meet. It may also include information about the company’s budget, timeline, and other relevant details. Vendors or suppliers that are interested in providing the product or service will submit a proposal in response to the RFP, outlining their offerings and prices.

The company or organization that issues the RFP will review the proposals and select a vendor or supplier based on various factors, such as price, quality, and compatibility with the company’s needs and goals. The RFP process helps companies and organizations to make informed decisions about their purchases and ensure that they get the best value for their money.

Hustles That Use RFP’s:

• Professional Services (Accountants, Lawyers, Web Developers etc.)
• Government Contracting

Imagine you own a food truck and you decide to buy a new, super-fast grill. ROI is like figuring out if that new grill was worth the money. You look at how much more money you made after buying the grill compared to how much the grill cost.

If you made a lot more money because of the faster grill, your ROI is good! That means buying the grill was a smart decision. But if you didn’t make much more money, or if you lost money, then your ROI isn’t so great.

So, ROI helps you figure out if the things you spend money on for your food truck, like new equipment or advertising, are paying off.

Revenue, also known as sales or top line, represents the total income a business generates from its core operations over a specific period. This income comes from selling goods or services and is recorded before any expenses are subtracted. Analyzing revenue growth is a crucial metric for understanding a company’s financial health and overall performance.

Startups are young, agile businesses built around a unique product or service with high growth potential. Often founded by passionate entrepreneurs, startups prioritize innovation and rapid iteration to disrupt existing markets or create entirely new ones. Due to their focus on growth, startups frequently seek funding from investors to scale their operations and reach a wider audience.

Target market is the specific group of people most likely to want what your business sells. Imagine you’re selling lemonade. You wouldn’t try to sell it to grown-ups who might prefer coffee. Instead, you’d sell it to kids who are hot and thirsty. Your target market is like those kids! By understanding your target market, you can tailor your products, advertising, and even your store location to their interests.

Imagine you own a small business. A trade line is like a report card showing how well you pay back your business loans. If you borrow money to buy new equipment or hire employees, the way you pay back those loans becomes a trade line.

It’s like a history of how responsible you are with money. Good trade lines can help you get better loan terms or even qualify for bigger loans in the future, just like getting good grades in school can help you get into a better college.

Imagine you have a home cleaning service. Upselling is like suggesting extra cleaning services to your customers. For example, you could offer to clean inside the fridge or oven for an extra fee after you’ve cleaned the rest of the house.

It’s like giving your customers a chance to make their home even cleaner and fresher. Upselling helps you earn more money while also making your customers really happy with your service.

Imagine you own a bakery. Valuation is like figuring out how much your bakery is worth. It’s like putting a price tag on your entire business.

To figure out the valuation, people look at things like how much money your bakery makes, how many customers you have, and how popular your bakery is. It’s like figuring out how much your bakery is worth if someone wanted to buy it.