Entrepreneurial Finance FSanchez
Financial Elements of Entrepreneurial Business Plans
Entrepreneurial Finance:
“Financial Elements of Entrepreneurial
Business Plans”
FIU Global Entrepreneurship Center
March 12, 2005
Entrepreneurial Finance FSanchez
Financial Elements of Entrepreneurial Business Plans
• Entrepreneurial Finance Perspective
• Understanding Cash and Risk
• Key Financial Elements of Business Plans
• Communications
• Raising Capital
• Open discussion Q&A
Agenda 03/12/05
Entrepreneurial Finance FSanchez
Financial Elements of Entrepreneurial Business Plans
The Questions
•
“Should I invest in this new venture?”
•
“How much cash will my new venture really need?”
•
“What are the risks and rewards of pursuing this opportunity?”
How can these be managed successfully? ”
•
“What is the value of my company? What factors affect this
value”
•
“How can I obtain financial capital for my growing company?”
Entrepreneurial Finance FSanchez
Financial Elements of Entrepreneurial Business Plans
• Managers must be able to view problems from the financial
perspective as well as from other perspectives.
• Figuring out how a particular decision will create value is a key
responsibility of management and does not require elaborate
systems.
• Finance is a way of thinking about cash, risk and value.
• But finance does not answer questions; it does not make
decisions. Finance can help identify the right questions to ask
and narrow down the options.
• When viewed from the finance perspective, some decisions
will turn out to be illogical or unfeasible. Deciding on what
should not or cannot be done is a valuable aid to general
managers
Entrepreneurial Finance is Management
Source: Note on Financial Perspective: What should Entrepreneurs Know? William Sahlman, HBS
Entrepreneurial Finance FSanchez
Financial Elements of Entrepreneurial Business Plans
Entrepreneurship:
“ The relentless pursuit of opportunity without regard to
the resources currently controlled”
Finance:
“The study of the allocation of cash and risk with t