ABSTRACT
After studying this chapter you will be able to:
Recognize the ‘how, what and when’ of financing an entrepreneurial business: e.g., how to raise capital, what the funding sources are, when it is most suitable to use each of the financial sources, how to maximize value in a growing venture, how to forecast financial performance and cash flow.
Identify the various financial resources available for entrepreneurial activities and evaluate their relevance to the business by recognizing their pros and cons for the different stages of the business.
Understand the flow in entrepreneurial businesses: i.e., assembling resources, combining them to build a resource platform that will yield distinctive capabilities, assessing their long-term and sustainable availability to the business.
List the business’s needs for the purpose of choosing the best-suited financial resources, and distinguish between needs for initial financing and venture growth capital.
Recognize the role of networking for the most valuable financial information and for locating the relevant, available financial resources.
Recognize the major processes in managing the business’s financial operations.
Understand the role of factoring for immediate cash funding while experiencing long billing cycles that put a strain on cash flow, and understand the actions of factoring.
Distinguish the key competitive issues facing the entrepreneurial business while buying and selling a business, including research, due diligence and pricing.
