Entrepreneurial Finance : Finance and Business Strategies for the Serious Entrepreneur

by Rogers, Steven

• ISBN13: 9780071591263
• ISBN10: 0071591265
• Edition: 2nd
• Format: Hardcover
• Copyright: 2009-01-14
• Publisher: McGraw-Hill

Summary

To start a successful business, you need a comprehensive toolbox full of effective financial and business techniques at your fingertips.Entrepreneurial Financeprovides the essential tools and know-how you need to build a sturdy foundation for a profitable business. This practical road map guides you from crafting a meaningful business plan to raising your business to the next level. It offers potent methods for keeping firm financial control of your enterprise and insightful tips for avoiding the multitude of financial barriers that may block your entrepreneurial dream.Written by Steven Rogers, a leading educator at the prestigious Kellogg School of Management, this reliable guidebook covers: The dual objectives of a business plan and how to ensure that both are fulfilled Differences between debt and equity financing and how and why to use each Real-world methods for structuring a deal to benefit both the financier and the entrepreneur Valuation techniques for understanding what your business is truly worth Essential resources for finding the detailed information you needEntrepreneurial Financeclearly explains the inescapable rules of finance and business by using real-world examples and cutting-edge data from the Global Entrepreneurship Monitor (GEM) research project. It features up-to-date coverage of phantom stock, options, and the state of entrepreneurship in such countries as Canada, Europe, Asia, and South America.This definitive guide is effective in today's business climate, with robust, no-nonsense coverage on everything from the new realities of revenue valuation and the growth of women entrepreneurs to the fallout from the dot-com boom and the impact of Sarbanes-Oxley on corporate governance.Just because you're in business for yourself doesn't mean you're alone.Entrepreneurial Financehelps you create a long-term plan for achieving maximum profit.

Author Biography

Steven Rogers is the Gordon and Llura Gund FamilyDistinguished Professor of Entrepreneurship at Kellogg.

Table of Contents

Preface	p. xi
The Entrepreneurial spectrum	p. 1
Introduction	p. 1
Entrepreneurial Finance	p. 2
Type of Entrepreneurs	p. 3
The Entrepreneurial Spectrum	p. 5
The Entrepreneurs	p. 17
Indroduction	p. 17
Success Rates of Entrepreneurs	p. 24
Why Become an Entrepreneur?	p. 35
Traits of an Entrepreneur	p. 35
Impact on the Economy	p. 45
Impact on Gender and Race	p. 48
The Business Plan	p. 55
Indroduction	p. 55
The Dual-Purpose Document	p. 56
Business Plan Development and Advuce	p. 57
The Business Plan	p. 58
Development of Pro Formas	p. 71
Checklist of Financial Information	p. 74
Most Important Business Plan Sections	p. 75
Business Plan Development Sources	p. 76
After the Business Plan Is Written	p. 78
Financial Statements	p. 81
Introduction	p. 81
The Income Statement	p. 82
The Balance Sheet	p. 92
The Statement of Cash Flows	p. 97
Financial Statement Analysis	p. 103
Introduction	p. 103
Proactive Analysis	p. 103
Income Statement Analysis	p. 107
Ratio Analysis	p. 108
Breakeven Analysis	p. 116
Measuring Growth	p. 117
Case Study-Clark Company	p. 121
Gross Margins	p. 130
Net Margins	p. 140
Other Issues to Consider	p. 143
Cash Flow Management	p. 149
Introduction	p. 149
Types of Cash Flow	p. 149
Cash Flow Forecasts	p. 153
Cash Flow Management	p. 155
Accounts Receivable	p. 158
Accounts Payable	p. 168
The Cash Gap	p. 170
Working Capital	p. 174
Finding Cash	p. 175
Valution	p. 179
Introduction	p. 179
Valuing the Clark Company	p. 182
Premoney and Post money Valuations	p. 183
Why Value Your Company?	p. 185
Key Factors Influencing Valuation	p. 187
Valuation Methods	p. 203
Multiples	p. 203
Multiples of Gross Morgin	p. 210
Different Industries Use Different Multiple Benchmarks	p. 210
Asset Valuation	p. 241
Capitalization of Cash Flows	p. 214
Valuing Technology and Internet Companies	p. 220
Raising Capital	p. 229
Introduction	p. 229
Value-Added Investors	p. 231
Sources of Capital	p. 232
The Investment Is in the Entrepreneur	p. 233
Debt Financing	p. 237
Introduction	p. 237
Types of Debt	p. 238
Sources of Debt Financing	p. 239
Creative Ways to Structure Long-Term Debt	p. 261
Long-Term Debt Rules to Live By	p. 262
Debt Financing for Working Capital	p. 263
Equity Financing	p. 275
Introduction	p. 275
Sources of Equity Capital	p. 276
Private Placements	p. 281
Corporate Venture Capital	p. 284
Private Equity Firms	p. 285
International Private Equity	p. 291
Advice for Raising Private Equity	p. 292
Increasing Specialization of Private Equity Firms	p. 293
Identifying Private Equity Firms	p. 294
Small-Business Investment Companies	p. 295
Initial Public offerings	p. 297
Public Equity Markets	p. 300
The IPO Process	p. 304
The Financing Spectrum	p. 309
Direct Public Offerings	p. 310
Financing for Minorities and Women	p. 315
Introduction	p. 315
Minorities-Debt Financing	p. 318
Minorities-Equity Financing	p. 319
Women-Debt Financing	p. 321
Women-Equity Financing	p. 322
Taking a Job with an Entrepreneurial Firm	p. 327
Introduction	p. 327
Case Study: Considering a Jab Offer from an Early-Stage Company	p. 328
Case Study Analysis	p. 338
Intrapraneurship: Corporate Entrepreneurship	p. 345
The Intrapreneurship Spectrum	p. 346
Intrapreneurship Models	p. 348
Traits of the High-Growth Intrapreneur	p. 349
Acts of Intrapreneurship	p. 350
Signs of Intrapreneurial Success	p. 352
Standard Operating Procedures	p. 353
Intrapreneurship Blunder	p. 354
Conclusion	p. 357
Appendices	p. 359
Industry Profitability	p. 359
U.S. Funds Focused on Minority Markets	p. 367
Index	p. 373
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