Glossary

A

Accelerator

An intensive program involving a small cohort of owners who together are learning a series of concepts in a short period of time. For example, see Jumpstart.

Accounts Payable

Accounts Receivable

Accrual-Basis Accounting

Accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged. The term “accrual” refers to any individual entry recording revenue or expense in the absence of a cash transaction. See https://www.entrepreneur.com/encyclopedia/accrual-accounting

At-Will Employment

C

Cash-Basis Accounting

Definition: An accounting system that doesn’t record accruals but instead recognizes income (or revenue) only when payment is received and expenses only when payment is made. There’s no match of revenue against expenses in a fixed accounting period, so comparisons of previous periods aren’t possible. See https://www.entrepreneur.com/encyclopedia/cash-basis-accounting

Competitive Pitch

Contract

Copyright

The exclusive legal right, given to an originator or an assignee to print, publish, perform, film, or record literary, artistic, or musical material, and to authorize others to do the same. See https://www.copyright.gov/help/faq/faq-definitions.html

Corporation

E

E&O Insurance

Engagement

Employee

Executive Producer

F

Freelancer

I

Indemnity

Infinite Revisions

Insurance Requirements

L

Lab

M

Managing Director (UK)

Title of the most important working director in charge of the way a company is managed.

Master Services Agreement

N

Non-Compete

P

Payment Terms

Producer

Proposal

Principal

S

Saleskeeping™

The method of systems and routines which consistently generates project revenue through awareness, lead generation, nurturing, and sales. [search]

Seasons of the Creative Firm™

The stages describing how a creative firm evolves over time as it moves through the Painful, Push, Punch, Perform, and Power Seasons. [search]

Sequential Liability

An agreement where a company (typically an advertising agency) does not pay money they owe until they first receive money that is owed to them for the same project, i.e., “You won’t get paid until we get paid.” [search]

The Seven Ingredients of a Creative Firm™

The seven overall areas of business which determine the relative strength of a creative firm: Creative, Production, Positioning & Marketing, Sales, Finance, Operations, and Entrepreneurship. [search]

The Splits™

The ratio describing how gross revenue in a project-based creative firm is “split” between direct (i.e., project) and indirect (i.e., overhead) costs. [search]

U

Underages

Money required to be returned to a client when a project is completed at a cost less than a agreed upon budget. [search]

W

Work-For-Hire

Workshop