ENT 4024 - 10 - ENT 4024-003: Entrepreneurship PDF

Preview

Summary

ENT 4024-003: Entrepreneurship...

Description

disaster loan - an SBA loan to a small business devastated by some kind of financial or physical loss

nonbank sources of debt capital - Asset-based lenders Vendor financing Equipment suppliers Commercial finance companies Savings-and-loan associations Stockbrokers Credit unions Private placements Small business investment companies

advance rate - the percentage of an asset's value that a lender will lend

margin loan - a loan from a stockbroker that uses the stocks and bonds in the borrower's portfolio as collateral

margin (maintenance) call - a situation that occurs when the value of a borrower's portfolio drops and the broker calls the loan in, requiring the borrower to put up more cash and securities as collateral

credit union - a nonprofit financial cooperative that promotes saving and provides loans to its members

small business investment companies (SBICs) - privately owned financial institutions that are licensed by the SBA and use a combination of private capital and federally guaranteed debt to provide long-term venture capital to small businesses

other federal and state programs - - Economic Development Administration (EDA) - Department of Housing and Urban Development - U.S. Department of Agriculture's Business Program and Loans - Small Business Innovation Research Program

- Small Business Technology Transfer Program - State and Local Loan Development Programs

capital access program (CAP) - a state lending program that encourages leading institutions to make loans to businesses that don't qualify for traditional financing because of their higher risk

revolving loan funds - community programs that combine private and public funds to make loans to small businesses, often at below-market interest rates

Time out of cash - The total cash it will take to sustain the business until the business achieves breakeven cash flow

return on investment - the percentage of the total cost of purchasing an investment and the profit made from selling that investment

Customer Segments - groups of people who share similar needs and thus are likely to desire the same features in a product

value proposition - a collection of product and service features that is both attractive to customers and different than competitors' offerings

Customer Relationshsips - Not every business provides the same type and same level of customer service.

Channels - Refer to both communication (promotion) and distribution (product placement).

Key Activities - The goal is to build a basic checklist of what needs to be done to open the business and what activities are necessary to ensure its long-term success.

Key resources - Supports a successful launch to sustain the business as it grows.

Key partners - the network of suppliers and partners that make the business model work

Revenue Streams - Serves as the framework for the more detailed revenue forecasts developed for the business plan.

cost structure - The framework for developing more detailed costs that entrepreneur will incorporate into financial forecasts of the business plan

(1) the reality test (2) the competitive test (3) the value test - Three reasons for developing a business plan

Executive Summary - Be concise and focused. This may be all potential investors read. Include a very brief financial summary and show why you need the money and what's in it for the investor. 1-1 1/2 Pages.

Mission statement - Brevity and honesty are key. 1-2 Sentences.

Company History - What gave you the idea to engage in this business?...