Entrepreneurial Finance: Fundamentals of Financial Planning and Management for Small Business.pdf
With its balanced coverage of entrepreneurial finance, small business management, and entrepreneurship, this book is unique among other leading textbooks that focus on one aspect and treat the other two with minimal coverage. This book first establishes the concepts of a small business and entrepreneurship in today's economy. The entrepreneur's ideas and role in establishing a new venture is also recognized and identified. In addition, the author extensively covers the business plan by exploring its rationale, significance, and requirements anddiscusses in depth the entire process of writing a successful plan. The major topics of the finances of small businesses is addresses, followed by the major topics of how small businesses are operated, managed, and controlled. The author's philosophy of writing an inclusive and comprehensive book to cover the whole journey from starting-up to harvesting a small firm stems from the perceived need for training well-rounded, knowledgeable, skillful, and motivated young entrepreneurs who will carry the brunt of maintaining and developing a prosperous economy. This book will properly equip readers with the knowledge, skills, and practice required to establish, run, and lead their own business ventures. The book is divided into four parts: Part One, Entrepreneurial Perspective; Part Two, Entrepreneurial Organization; Part Three, Entrepreneurial Finance and Evaluation; and Part Four, Entrepreneurial Management and Control.
PREFACE PART I: ENTREPRENEURIAL PERSPECTIVE 1. Small Business and the Entrepreneur 1.1 What is Entrepreneurial Finance? 1.2 Significance of the Small Business 1.3 Entrepreneurship and the Entrepreneur 1.4 The Idea and the Opportunity 1.5 From an Idea to Reality 2. Small Business Options 2.1 Starting a New Business 2.2 Buying an Existing Business 2.3 Purchase Options 2.4 Franchise 2.5 Home Business and Family Business 3. Small Business Purchase Price 3.1 Asset-based Value 3.2 Cash Flow-based Value 3.3 Market-based Value 3.4 Capitalized Earnings-based Value 3.5 Financial Ratios-based Value PART II: ENTREPRENEURIAL ORGANIZATION 4. Forms of Business Ownership 4.1 Sole Proprietership 4.2 Partnership 4.3 Corporation 4.4 Other Forms of Business Ownership 5. The Business Plan 5.1 What is a Business Plan 5.2 Contents of the Plan 5.3 Other Elements of the Plan 5.4 Reviewing the Plan 5.5 Responses to Potential Risks 5.6 Financing the Plan 5.7 Presenting the Plan 5.8 Updating the Plan 5.9 Grooming the Plan PART III: ENTREPRENEURIAL FINANCE AND VALUATION 6. Financial Statements and their Analysis 6.1 The Balance Sheet 6.2 Income-Expenses Statement 6.3 Financial Statement Analysis 6.4 Ratio Analysis 6.5 The DuPont Model 7. Capital Structure and Leverage 7.1 Debt and Equity Capital 7.2 The Optimal Capital Structure 7.3 Leverage 8. Profit and the Cost-Volume Analysis 8.1 Profit Concept between Economics and Accounting 8.2 Profit Margin and Markup 8.3 Profit and Cash Flow 8.4 Profitability and Earning Power 8.5 When Would a Firm Start Collecting Profits? 8.6 Break-even Quantity and Break-even Revenue 8.7 Break-even Graphics 8.8 Desired Profit and the Break-even Point 8.9 Non-cash Charges and the Break-even Point 8.10 Profit Planning 9. Pro Forma Statement and Financial Forecasting 9.1 Basic Pro Forma Statements 9.2 Pro Forma and the Sales Ratio 9.3 Changes in Sales and the Needed Fund 9.4 Role of Financial Forecasting 9.5 Basic Steps of Forecasting 9.6 Types of Forecasting Models 9.7 The Analysis of Time Series 9.8 Fitting the Model 9.9 Adjusting for Seasonality 9.10 The Smoothed Forecasts 9.11 Barometric Forecasting 9.12 Testing Forecasting Accuracy 10. Working Capital 10.1 What is Working Capital? 10.2 Working Capital and Profit-Risk Manipulation 10.3 Working Capital and Financing Strategies 11. Financial Management of Working Capital 11.1 Cash Management 11.2 Marketable Securities Management 11.3 Account Receivable 11.4 Account Payable and Trade Discounts 12. Inventory Management and Control 12.1 What is Inventory? 12.2 Economic Order Quantity (EOQ) 12.3 The Reorder Point (ROP) 12.4 JIT-Inventory Systems 13. Investment Project Evaluation and Risk Management 13.1 Categories of Investment Purposes 13.2 Steps for Project Selection 13.3 Types of Projects 13.4 Patterns of Cash Flow 13.5 Project Evaluation Techniques 13.6 Risk and its Sources 13.7 Methods of Risk Management 13.8 Sensitivity Analysis, Scenario Analysis, and Simulation 14. Business Valuation and Harvesting 14.1 What is Business Valuation? 14.2 Valuation Tools 14.3 Valuation Techniques 14.4 What is Business Harvesting? 14.5 Harvesting Strategies PART IV: ENTREPRENEURIAL MANAGEMENT AND CONTROL 15. Basic Entrepreneurial Management 15.1 Planning 15.2 Organizing 15.3 Staffing 15.4 Directing 15.5 Controlling 15.6 Business Strategies 16. Layout and Location 16.1 Factors Affecting the Selection of Location 16.2 Types of Business Outlets and Locations 16.3 Site Selection 16.4 Site Alternatives 16.5 Layout and Design 17. Operations, Budgeting, and Taxes 17.1 Material and Supplies: Buying or Making? 17.2 Product Quality 17.3 Budgetary Variance and Flexible Budgeting 17.4 Types of Budgets 17.5 Considerations for Budgetary Control 17.6 Types of Taxes 17.7 Taxes and Forms of Business Ownership 17.8 Considerations and Strategies 18. Marketing, Promotion, and Distribution 18.1 Market and Customer 18.2 Marketing and Customer's Decisions 18.3 Marketing Research 18.4 Product 18.5 Price 18.6 Place 18.7 Promotion 19. Human Resource Management 19.1 Job Analysis 19.2 Personnel Planning