For many, starting a business can be an overwhelming experience. Understanding the financial aspects of running a business can be even more daunting. Entrepreneurial Finance, Sixth Edition was written to help a broad range business owners underst financial aspects of entrepreneurship. Unlike traditional corporate finance books, this text explains the financial topics most important to running small business suchasinventory control, time money, working capital management, and forecasting. Updated to reflect recent economic trends, this edition also shows how two popular business tools (excel and TI BA II Plus calculator) can assist business owners in problem-solving and decision-making. Features Tackles the financial aspects of business entrepreneurship—from business planning to inventory control, to time money, to working capital management, to forecasting and financial planning for both the entrepreneur business.
Provides critical background knowledge—by presenting basic economic and financial concepts early in the text. Explains the different types of small businesses—by examining the financial statements for Sole Proprietorships, Partnerships, LLCs and Corporations. Explains all six time money formulas—ir application in both personal financial planning and business financial planning.
Offers a glimpse at real small businesses—using short end-of-chapter case studies. Shows how to solve sample problems—using excel and Instruments BAII Plus calculator. Includes time money tables—see Appendix B.
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ENTREPRENEURIAL FINANCE Strategy, Valuation, and Deal Structure Janet Kiholm Smith Richard L. Smith Richard T. Bliss Stanford Economics and Finance An Imprint of Stanford University Press Stanford, California CONTENTS List of Illustrations xvii Abbreviations xxiii Preface xxvii Acknowledgments xxxix About the Authors xli. 1.2 The Finance Paradigm 12. The Importance of Real Options. Objective: Maximum Value for the Entrepreneur. 1.3 The Rocket Analogy 14. 1.4 The Stages of New Venture Development 15. 1.5 Measuring Progress with Milestones 17. 1.6 Financial Performance and Stages of New Venture Development 19. 1.7 The Sequence of New Venture Financing 21.
X Exclude words from your search Put - in front of a word you want to leave out. For example, jaguar speed -car Search for an exact match Put a word or phrase inside quotes. For example, 'tallest building'. Search for wildcards or unknown words Put a. in your word or phrase where you want to leave a placeholder. For example, 'largest.
in the world'. Search within a range of numbers Put. Between two numbers. For example, camera $50.$100. Combine searches Put 'OR' between each search query. For example, marathon OR race. Course Meeting Times Lectures: 2 sessions / week, 1.5 hours / session Recitations: 1 session / week, 1 hour / session Requirements The course requires the concepts and skills developed in, which is a pre-requisite.
Other courses that may fulfill the pre-requisite requirements are or 15.415 Finance Theory. Some knowledge of option pricing will also be needed in a few instances. Because we will be linking financial concepts to other business concepts your broad MBA training will also come in handy. This course places a strong emphasis on presentation and discussion skills. It will be important for you to explain your positions or arguments to each other and to try to argue for the implementation of your recommendations.
Course Overview This course will use a combination of case discussions and lectures to study entrepreneurial finance. The course is targeted to budding entrepreneurs and venture capitalists. There are five main areas of focus:.
Business Evaluation and Valuation: Here we will give you some tools to valuate early stage business opportunity. We will also review the standard tools of valuation applied to start-up situations and introduce the venture capital method and the real options approach to valuation. Financing: In this module, we will highlight the main ways that entrepreneurs are financed and analyze the role of financial contracts in addressing information and incentive problems in uncertain environments. Venture Capital Funds: We will look at the structure of venture capital funds and their fund raising process. This module will include issues of corporate venture capital and private equity funds in emerging market economies.
Employment: We will study the issues of attracting and compensating employees in start-ups. Exit: We will discuss how founders should exit. Should they sell to another company, take it public, or continue independently as a private company? Carl Stjernfeldt (General Partner at Castile Ventures) will co-teach a number of sessions. We are very lucky to have Carl participate so please use his time judiciously! We also have a number of additional guest speakers who will discuss recent developments in the industry. Materials A number of case studies are required for this course.
The following two texts are optional materials: Levin, Jack S. Structuring Venture Capital, Private Equity, and Entrepreneurial Transactions. Aspen Publishers, 2009. Metrick, Andrew, and Ayako Yasuda. Venture Capital and the Finance of Innovation. Deliverables and Procedures This course is designed to be challenging and time-consuming. You should expect to prepare an average of one case per week.
Each case will come with guideline questions. Students are required to submit a two-page memorandum on the cases. Students can (but are not required to) work in teams of no more than four. You have the option of not handing in two cases during the semester. The memorandums should be typed and double-spaced.
They should be written as if you were presenting it to your business partners (be they your fellow entrepreneurs or investors). The two-page limit is for text only. You may attach as many numerical calculations as you wish. Memoranda will not be accepted after the class has met.
Grading of the memoranda will be on the bases of check marks. The grades on these memorandums tend to help on the margins, moving students up or down half a grade. Class attendance is critical to the learning process. Because this is such a new area of academic inquiry, there are no textbooks from which to distill all the critical information. The learning will come from struggling together to come to a better understanding of the key issues in the case.
Also, because this is a new course, your input is particularly valued as we learn together. This is one of over 2,200 courses on OCW. Find materials for this course in the pages linked along the left. MIT OpenCourseWare is a free & open publication of material from thousands of MIT courses, covering the entire MIT curriculum. No enrollment or registration. Freely browse and use OCW materials at your own pace. There's no signup, and no start or end dates.
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