Acceptance of failure, 18
Accounting, key personnel attributes, 140–141
Accounts payable, 124
Accounts receivable, 123
Address, choosing, 45
All-encompassing, 7
Amortized vs. interest, 117
Angel funds, 4
Angel investors, 113
A/R turnover ratio, 127
Assets
sale leasebacks, 114
Assumptions, 117
Atmosphere of dread, 18
Blame, shifting, 19
Blaming instead of acting, 18–19
Blanket loans, 118
Break-even point, 69
Budget, creating, 55
Business
basic principles
market analysis and research, 40–41
planning to exploit niche market, 39
pre-start-up to-do list, 37–38
stages of business life cycles, 41–43
substitutes for idea, 40
choosing products and services, 60
handling serious issues, 107
identity, 49
opportunities and pitfalls, 58–59
reasons for failure, 58
Capital raising presentation
funding stages
seed capital, 131
start-up capital, 131
two rounds of financing, 131
working capital loans, 131–132
funding steps, 129
presentation
management illustrations, 133–134
evaluation, 130
filtering, 130
screening, 130
Capitalized company, 3
Cash, 123
Cash flow
problems
corporate mistakes, identifying, 21–24
looking at additional mistakes, 23–24
Collateral pledges, 118
Company name, choosing, 45
Competition
creating budget, 55
developing plan, 54
establishing a mission, 54
making living document, 55
SWOT analysis, 54
Competitive advantage, ability to sustain, 81–82
Complacency, 3
Compliance, 49
Conservative request, 117
Continuity, 75
Contradictory methods
Controllable expenses, 121
Convertible debt, 115
Core values, 19
Corporate
image, 142
mistakes, identifying
fundamental historic truisms, 24–27
social responsibility, 49
structure, 31
Costs
of sales, 120
start-ups, 88
Covenants, 118
Credibility, 18
Credit customers, treating, 76
Creditors’ days, 147
Current assets, 123
turnover, 147
Current liabilities, 124
Customers, 48
credit customers, treating, 76
Debt
coverage ratio, 127
ratios, 147
structure, 104
to worth ratio, 126
Debtors’ days ratio, 146
Deception, 18
Decision trees, 94
Decision-making, 8
strategic tools
decision trees, 94
force field, 93
Pareto analysis, 93
plus, minus, and interesting, 94
tools vs. strategy, 91
Delegation of authority, 106
Direct competition, 66
Downside planning, 117
Due diligence, 31
basic checklist, 141
contracts and agreements, 144
corporate image, 142
financial statements, 143
general, 142
marketing, 143
Efficiency, 103
Egotistic behavior, 18
Employment, 75
Enterprises, forms of, 47
billionaire, personality traits of, 17–20
understanding, 15
Entrepreneurial groupings, 16
Entrepreneurship, defined, 35–36
Environmental factors, 81
Equipment leasing, 114
Equity, 112
Established companies, critical success factors for, 88–89
Experts, using, 24
Failure, acceptance of, 18
Feasibilities
analysis of competition, 66–67
selecting competition strategy, 67–68
financial viability, 69
organizational structure viability, 65
process of, 63
Finance, key personnel attributes, 140–141
Finances and business, 109–110
deal negotiation, 116
financial projections, 110–111
funding available, type of
angel investors, 113
asset sale leasebacks, 114
convertible debt, 115
equipment leasing, 114
government or state bonds, 115
government small business loans and funds, 113
letters of credit, 114
limited partnerships, 115
lines of credit, 115
private placements, 115
purchase order advances, 114
receivable factoring, 114
stock market listing, 115
strategic partnerships, 113
venture capital, 113
funds to start a business, 111–112
total cash requirement, 110
Financial assessment, 31
Financial forecasts
income statement
controllable expenses, 121
cost of sales, 120
gross profit, 121
gross profit margin, 121
total net sales, 120
income statement worksheet
cash-flow projections, 125–126
key indicators and ratios, 126–127
projection information, 119–120
Financial problems
debt structure, 104
efficiency, 103
identification, 101
liquidity, 102
profitability, 102
solvency, 102
Financial statements, 143
Financial viability, 69
Financing, two rounds of, 131
Fixed assets, 124
turnover, 147
Fixed costs, 53
Force Field, 93
Forecasts, 69, 93. See also Financial forecasts
Funding. See also Capital raising presentation
stages
seed capital, 131
start-up capital, 131
two rounds of financing, 131
working capital loans, 131–132
steps, 129
General key personnel attributes
accounting and finance, 140–141
human resources, 141
management and key staff, 139–140
marketing and sales, 140
wishful vs. realistic, 24
Government or state bonds, 115
Government small business loans and funds, 113
Hesitation, 3
Human resources (HR), 141
Income statement
controllable expenses, 121
cost of sales, 120
gross profit, 121
gross profit margin, 121
total net sales, 120
worksheet
cash-flow projections, 125–126
Indirect competition, 66
Insurance, 46
Interest payable, 124
Interest rate, 117
Internal matters, troubleshooting, 97–99
International Financial Reporting Standards (IFRS), 31
International Monetary Fund (IMF), 70
Investments, 123
Jungle Tactics’ research, 98
Key managers, motivation, 107
Key personnel, 48
Legal factors, 81
Legal to-do list
address, choosing, 45
company name, choosing, 45
directors, shareholders, and other details, 47–49
forms of enterprises, 47
licenses, insurance, and taxes, 46
location and pricing, 46
Letters of credit, 114
Liabilities, assets vs., 123–124
Licenses, 46
Limited partnerships, 115
Lines of credit, 115
Liquidity, 102
ratio analysis, 146
Location, 46
Long-term investments, 123
Long-term liabilities, 124
Macroaudit, 38
Management, 74
controls, 118
strengths and capabilities of, 81
visuals, guidelines for, 133–134
Market analysis and research, 40–41
Market opportunity, checking, 38–39
Market potential, 69
Marketing, 143
key personnel attributes, 140
Medium-sized enterprises (SMEs), 67
establishing, 54
Net profit margin, 126
Net worth, 124
Niche market
planning to exploit, 39
Notes payable, 124
Organizational structure viability, 65
Ostentatiousness, 23
Overtrading
danger signs of, 136
Owners’ equity, 124
Pareto analysis, 93
Payable days, 136
Payroll accrual, 124
Peer analysis, 68
Penalties, 117
Personal guarantees, 118
Personality traits of billionaire entrepreneurs, 17–20
Personality, 74
PESTEL analysis, 24, 31, 38, 80–81, 99–100
Pilot operation, 106
Plan, developing, 54
Plus, minus, and interesting (PMI), 94
barriers, 82
competitive advantage, ability to sustain, 81–82
differentiation, 82
prominence of company, 82
strengths and capabilities of management, 81
Porter’s Five Forces, 24, 31, 38, 67, 80, 81–82, 99–100
Pre-expansion rules, 105
pilot operation, 106
Prepaid expenses, 123
Pre-start-up to-do list, 37–38
Primary data, 41
Priorities, developing
competition
creating budget, 55
developing plan, 54
establishing a mission, 54
making living document, 55
SWOT analysis, 54
setting goals, 52
vision, mission, and goals, 51–52
Private company, 47
Private placements, 115
Problem, 63–64. See also Financial problems
Products and services, choosing, 60–61
Profit and loss. See Income statement
Profitability, 102
ratios, 147
Public company, 47
Purchase order advances, 114
pertinent issues questions, 29–30
Ratio analysis
debt ratios, 147
liquidity, 146
profitability ratios, 147
Receivable factoring, 114
Reputation enhancement, 49
Research and feasibility, 31
Respect, 19
Responsibility, not taking, 24
Return on equity, 147
Return on total assets, 147
Revenue, 120
Risk-to-reward analysis, 93
Sales, key personnel attributes, 140
Section 21 companies, 47
Seed capital, 131
Self-explanatory, 106
Selling a stake, 118
Serious issues, handling, 107
Shares, 123
Short-term investments, 123
Shotgun approach, 23
Social factors, 81
Social media, 76
Social responsibility, 49
Solvency, 102
Staff, employing, 75
Stakeholders, 48
Start-ups
capital, 131
costs, 88
critical success factors for, 87
vs. established companies, 87–88
Stock, 123
market listing, 115
repurchase, 118
Strategic partnerships, 113
Strategy
industry type, 99
internal matters, troubleshooting, 97–99
tools. See also specific tools
SWOT analysis, 31, 38, 54, 80, 83–84, 99–100
Taxes, 46
payable, 124
Team building, 73
consultants and professionals, 74–75
Technology factors, 81
Termination contracts, 75
Timeframe, 117
Tools. See Strategy, tools
Total asset turnover, 147
Total liabilities, 124
Total net sales, 120
Tough questions, 19
Truism, 21
Truth, 18
Two-pronged approach, 4
United Nations (UN), 70
Value add, 49
Value-added tax (VAT) legislation, 46
Value tone, setting, 23
Variable costs, 53
Vendors. See Suppliers
Venture capital, 113
Venture capitalists, 4
Working capital loans, 131–132
World Bank, 70