Technology Ventures: From Idea to OpportunityTechnology Ventures: From Idea to OpportunityChapter 17: Summary
Summary
Budg...
Technology Ventures: From Idea to OpportunityChapter 17:Table 17.1
Four Steps to Build A Financial Plan
1. The Sales Forec...
Technology Ventures: From Idea to OpportunityChapter 17:Figure 17.1
Assets
The Value
of Items
Owned
Income
Liabilities
The...
Technology Ventures: From Idea to Opportunity
Cash Flow is the amount of cash flowing into
or out a firm during a specific...
Technology Ventures: From Idea to OpportunityChapter 17:Figure 17.2
Calculations of the Income Statement
Technology Ventures: From Idea to OpportunityChapter 17:Figure 17.3
The Cash Flow Process
Technology Ventures: From Idea to OpportunityChapter 17:Breakeven
Breakeven is defined as when the total sales
equal the t...
Technology Ventures: From Idea to OpportunityChapter 17: Principle
A sound financial plan demonstrates the
potential for g...
Technology Ventures: From Idea to OpportunityTechnology Ventures: From Idea to OpportunityChapter 17: DVD Video
DVD Video
...
Technology Ventures: From Idea to OpportunityTechnology Ventures: From Idea to OpportunityChapter 17: DVD Video
DVD Video
...
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Chap17

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Chapter 17- Entrepreneurship lecture International University- HCMcity

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Chap17

  1. 1. Technology Ventures: From Idea to OpportunityTechnology Ventures: From Idea to OpportunityChapter 17: Summary Summary Budgets are not merely affairs of arithmetic, but in a thousand ways go to the root of prosperity of individuals, the relation of classes, and the strength of kingdoms. William E. Gladstone How do entrepreneurs describe the financial elements of their new venture? Entrepreneurs build a financial plan to determine the economic potential for their venture. This plan provides an estimate of the potential of the venture.
  2. 2. Technology Ventures: From Idea to OpportunityChapter 17:Table 17.1 Four Steps to Build A Financial Plan 1. The Sales Forecast • Time Frame — Two or three years • Assumptions about sales per customer, number of customers and growth rate of sales • Calculation of the sales forecast 2. The Costs Forecast • Assumptions about the costs of doing business in the specified time frame • Calculation of the costs associated with the projected sales of Step 1. 3. The Income and Cash Flow Forecast • Assumptions about the timing of cash receivables and payables specified in the time frame. • Calculation of the income and cash flow associated with the projected sales and costs on a monthly basis over the time frame. 4. The Balance Sheet • Assumptions about the starting value of cash and assets. • Calculated based on the income and cash flows from Step 3.
  3. 3. Technology Ventures: From Idea to OpportunityChapter 17:Figure 17.1 Assets The Value of Items Owned Income Liabilities The Value of Items Purchased, Borrowed, Owed, or Leased Expenses Net Income Σ+ _ Assets generate income and liabilities lead to expenses. Net income is income minus expenses.
  4. 4. Technology Ventures: From Idea to Opportunity Cash Flow is the amount of cash flowing into or out a firm during a specific period. TC(N+1) = (CF – Disbursements) + TC (N) Where: TC(N) = Cash on hand at the end of the Nth month CF = Cash Flow into the firm in the Nth month Chapter 17: Cash Flow
  5. 5. Technology Ventures: From Idea to OpportunityChapter 17:Figure 17.2 Calculations of the Income Statement
  6. 6. Technology Ventures: From Idea to OpportunityChapter 17:Figure 17.3 The Cash Flow Process
  7. 7. Technology Ventures: From Idea to OpportunityChapter 17:Breakeven Breakeven is defined as when the total sales equal the total costs. R = Q x P TC = FC + VC and VC = Qc Then: Q x P = FC + Qc Breakeven Q = Where: c = Cost Per Unit P = Price Per Unit )( cP FC −
  8. 8. Technology Ventures: From Idea to OpportunityChapter 17: Principle A sound financial plan demonstrates the potential for growth and profitability for a new venture and is based on the most accurate and reliable assumptions available.
  9. 9. Technology Ventures: From Idea to OpportunityTechnology Ventures: From Idea to OpportunityChapter 17: DVD Video DVD Video “Keeping a Financial Focus” Gajus Worthington (Fluidigm)
  10. 10. Technology Ventures: From Idea to OpportunityTechnology Ventures: From Idea to OpportunityChapter 17: DVD Video DVD Video “Keeping a Financial Focus” Gajus Worthington (Fluidigm)

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