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Entrepreneurial Finance: Fundamentals of Financial Planning and Management for Small Business

Book Description

Featuring key topics within finance, small business management, and entrepreneurship to develop and maintain prosperous business ventures

With a comprehensive and organized approach to fundamental financial theories, tools, and management techniques, Entrepreneurial Finance: Fundamentals of Financial Planning and Management for Small Business equips readers with the necessary fundamental knowledge and advanced skills to succeed in small firm and business settings. With a unique combination of topics from finance, small business management, and entrepreneurship, the book prepares readers for the challenges of today's economy.

Entrepreneurial Finance: Fundamentals of Financial Planning and Management for Small Business begins with key concepts of small business management and entrepreneurship, including management tools and techniques needed to establish, run, and lead business ventures. The book then delves into how small businesses are operated, managed, and controlled. General finance skills and methods are integrated throughout, and the book also features:

  • Numerous practical examples and scenarios that provide a real-world perspective on entrepreneurship and small business management

  • A brief summary, list of key concepts, and ten discussion questions at the end of each chapter to prepare readers for the challenges of today's economy

  • A practical guide to the complete life of a small business, from establishing a new venture to training and developing young entrepreneurs tasked with maintaining and developing a prosperous economy

  • An in-depth discussion of the entire process of writing a successful business plan, including the rationale, significance, and requirements

  • Techniques needed to solidify the free enterprise tradition, develop entrepreneurial strategies, and grow small businesses

  • Entrepreneurial Finance: Fundamentals of Financial Planning and Management for Small Business is an ideal textbook for upper-undergraduate and first-year graduate courses in entrepreneurial finance within business, economics, management science, and public administration departments. The book is also useful for MBA-level courses as well as for business and management PhD majors as a resource in methodology. The book is also an idea reference for entrepreneurs, business managers, market analysts, and decision makers who require information about the theoretical and quantitative aspects of entrepreneurial finance.

    Table of Contents

    1. PART I <i xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">ENTREPRENEURIAL PERSPECTIVE</i>
      1. CHAPTER 1 <i xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">SMALL BUSINESS AND THE ENTREPRENEUR</i>
        1. 1.1 What is Entrepreneurial Finance?
        2. 1.2 Significance of the Small Business
        3. 1.3 Entrepreneurship and the Entrepreneur
        4. 1.4 The Idea and the Opportunity
        5. 1.5 From an Idea to Reality
        6. 1.6 Summary
        7. Key Concepts
        8. Discussion Questions
      2. CHAPTER 2 <i xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">SMALL BUSINESS OPTIONS</i>
        1. 2.1 Starting a New Business
        2. 2.2 Buying an Existing Business
        3. 2.3 Purchase Options
        4. 2.4 Franchise
        5. 2.5 Home Business and Family Business
        6. 2.6 Summary
        7. Key Concepts
        8. Discussion Questions
      3. CHAPTER 3 <i xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">SMALL BUSINESS PURCHASE PRICE</i>
        1. 3.1 Asset-Based Value
        2. 3.2 Cash Flow–Based Value
        3. 3.3 Market-Based Value
        4. 3.4 Capitalized Earnings–Based Value
        5. 3.5 Financial Ratios–Based Value
        6. 3.6 Summary
        7. Key Concepts
        8. Discussion Questions
    2. PART II <i xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">ENTREPRENEURIAL ORGANIZATION</i>
      1. CHAPTER 4 <i xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">FORMS OF BUSINESS OWNERSHIP</i>
        1. 4.1 Sole Proprietorship
        2. 4.2 Partnership
        3. 4.3 Corporation
        4. 4.4 Other Forms of Business Ownership
        5. 4.5 Summary
        6. Key Concepts
        7. Discussion Questions
      2. CHAPTER 5 <i xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">THE BUSINESS PLAN</i>
        1. 5.1 What is a Business Plan?
        2. 5.2 Contents of the Plan
        3. 5.3 Other Elements of the Plan
        4. 5.4 Reviewing the Plan
        5. 5.5 Anticipating and Preparing Responses to Potential Risks
        6. 5.6 Financing the Plan
        7. 5.7 Presenting the Plan
        8. 5.8 Updating the Plan
        9. 5.9 Grooming the Plan
        10. 5.10 Summary
        11. Key Concepts
        12. Discussion Questions
    3. PART III <i xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">ENTREPRENEURIAL FINANCE AND VALUATION</i>
      1. CHAPTER 6 <i xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">FINANCIAL STATEMENTS AND THEIR ANALYSIS</i>
        1. 6.1 The Balance Sheet
        2. 6.2 Income–Expenses Statement
        3. 6.3 Financial Statement Analysis
        4. 6.4 Ratio Analysis
        5. 6.5 The Dupont Model
        6. 6.6 Summary
        7. Key Concepts
        8. Discussion Questions
      2. CHAPTER 7 <i xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">CAPITAL STRUCTURE AND LEVERAGE</i>
        1. 7.1 Debt and Equity Capital
        2. 7.2 The Optimal Capital Structure
        3. 7.3 Leverage
        4. 7.4 Summary
        5. Key Concepts
        6. Discussion Questions
        7. Note
      3. CHAPTER 8 <i xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">PROFIT AND THE COST&#8211;VOLUME ANALYSIS</i>
        1. 8.1 Profit Concept Between Economics and Accounting
        2. 8.2 Profit Margin and Markup
        3. 8.3 Profit and Cash Flow
        4. 8.4 Profitability and Earning Power
        5. 8.5 When Would a Firm Start Collecting Profits?
        6. 8.6 Break-Even Quantity and Break-Even Revenue
        7. 8.7 Break-Even Graphics
        8. 8.8 Desired Profit and the Break-Even Point
        9. 8.9 Non-Cash Charges and the Break-Even Point
        10. 8.10 Profit Planning
        11. 8.11 Summary
        12. Key Concepts
        13. Discussion Questions
      4. CHAPTER 9 <i xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">PRO FORMA STATEMENT AND FINANCIAL FORECASTING</i>
        1. 9.1 Basic Pro Forma Statements
        2. 9.2 Pro Forma and the Sales Ratio
        3. 9.3 Change in Sales (ΔS) and the Needed Fund
        4. 9.4 Role of Financial Forecasting
        5. 9.5 Basic Steps of Forecasting
        6. 9.6 Types of Forecasting Models
        7. 9.7 The Analysis of Time Series
        8. 9.8 Fitting the Model
        9. 9.9 Adjusting for Seasonality
        10. 9.10 The Smoothed Forecasts
        11. 9.11 Barometric Forecasting
        12. 9.12 Testing Forecasting Accuracy
        13. 9.13 Summary
        14. Key Concepts
        15. Discussion Questions
      5. CHAPTER 10 <i xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">WORKING CAPITAL</i>
        1. 10.1 What is Working Capital?
        2. 10.2 Working Capital and Profit-Risk Manipulation
        3. 10.3 Working Capital and Financing Strategies
        4. 10.4 Summary
        5. Key Concepts
        6. Discussion Questions
      6. CHAPTER 11 <i xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">FINANCIAL MANAGEMENT OF WORKING CAPITAL</i>
        1. 11.1 Cash Management
        2. 11.2 Marketable Securities Management
        3. 11.3 Account Receivable
        4. 11.4 Account Payable and Trade Discounts
        5. 11.5 Summary
        6. Key Concepts
        7. Discussion Questions
      7. CHAPTER 12 <i xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">INVENTORY MANAGEMENT AND CONTROL</i>
        1. 12.1 What is Inventory?
        2. 12.2 Economic Order Quantity (EOQ)
        3. 12.3 The Reorder Point
        4. 12.4 JIT-Inventory System
        5. 12.5 Summary
        6. Key Concepts
        7. Discussion Questions
      8. CHAPTER 13 INVESTMENT PROJECT EVALUATION AND RISK MANAGEMENT
        1. 13.1 Categories of Investment Purposes
        2. 13.2 Steps for Project Selection
        3. 13.3 Types of Projects
        4. 13.4 Patterns of Cash Flow
        5. 13.5 Project Evaluation Techniques
        6. 13.6 Risk and its Sources
        7. 13.7 Methods of Risk Management
        8. 13.8 Sensitivity Analysis, Scenario Analysis, and Simulation
        9. 13.9 Summary
        10. Key Concepts
        11. Discussion Questions
      9. CHAPTER 14 BUSINESS VALUATION AND HARVESTING
        1. 14.1 What is Business Valuation?
        2. 14.2 Valuation Tools
        3. 14.3 Valuation Techniques
        4. 14.4 What is Business Harvesting?
        5. 14.5 Harvesting Strategies
        6. 14.6 Summary
        7. Key Concepts
        8. Discussion Questions
    4. PART IV <i xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">ENTREPRENEURIAL MANAGEMENT AND CONTROL</i>
      1. CHAPTER 15 Basic Entrepreneurial Management
        1. 15.1 Planning
        2. 15.2 Organizing
        3. 15.3 Staffing
        4. 15.4 Directing
        5. 15.5 Controlling
        6. 15.6 Business Strategies
        7. 15.7 Summary
        8. Key Concepts
        9. Discussion Questions
      2. CHAPTER 16 Location and Layout
        1. 16.1 Factors Affecting the Selection of Location
        2. 16.2 Types of Business Outlets and Locations
        3. 16.3 Site Selection
        4. 16.4 Site Alternatives
        5. 16.5 Layout and Design
        6. 16.6 Summary
        7. Key Concepts
        8. Discussion Questions
        9. Note
      3. CHAPTER 17 <i xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">OPERATIONS, BUDGETING, AND TAXES</i>
        1. 17.1 Material and Supplies: Buying or Making?
        2. 17.2 Product Quality
        3. 17.3 Budgetary Variance and Flexible Budgeting
        4. 17.4 Types of Budgets
        5. 17.5 Considerations for Budgetary Control
        6. 17.6 Types of Taxes
        7. 17.7 Taxes and Forms of Business Ownership
        8. 17.8 Considerations and Strategies
        9. 17.9 Summary
        10. Key Concepts
        11. Discussion Questions
      4. CHAPTER 18 <i xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">MARKETING, PROMOTION, AND DISTRIBUTION</i>
        1. 18.1 Market and Customer
        2. 18.2 Marketing and Customer's Decisions
        3. 18.3 Marketing Research
        4. 18.4 Product
        5. 18.5 Price
        6. 18.6 Place
        7. 18.7 Promotion
        8. 18.8 Summary
        9. Key Concepts
        10. Discussion Questions
      5. CHAPTER 19 <i xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops" xmlns:m="http://www.w3.org/1998/Math/MathML" xmlns:svg="http://www.w3.org/2000/svg">HUMAN RESOURCE MANAGEMENT</i>
        1. 19.1 Job Analysis
        2. 19.2 Personnel Planning
        3. 19.3 Summary
        4. Key Concepts
        5. Discussion Questions
    5. END USER LICENSE AGREEMENT