Page 201 - Business Plans that Work A Guide for Small Business

190 • Index

“first mover’s advantage” concept Financial management. See Financing,
and, 9–10 financial management
GEM project and, 2 Financial plan. See Financing, financial

goals of, 10–12 management
investors and, 135 Financial projections, 12–13, 138,
IPOs and, 7–8 143, 155
knowledge of, 13–14 Financial statements, 137, 141–142
learning curve of, 4 Financing, financial management,
mistakes of, 4 161–163. See also Offering plan
motivation of, 11–12 accountants and, 14, 121, 122, 137
nascent, 3–5 actuals in, 142, 143
networking of, 14–15, 72, 159 balance sheet, 137, 141–142, 152,
new business owners as, 3 153
newsletter of, 14 build-up method for creating
number of, in U.S., 2 estimates, 94–96, 140–141
opportunity and, 16–24 burn rate and, 130
passion of, 15–16 business planning and, 39–40
prelaunch phase of, 3–4 cash flow, 130, 133, 136
salary of, 122–123 cash flow statement in, 141–142,
self-analysis for, 10–16 153–155
success in, keys to, 16–17, 74–75 COGS, 139–140, 146–147
success rates for, 2, 3–6 comparable method for creating
survivor rates, 5–6 estimates, 94–96, 138–140
thinking big, 34–35, 164–165 corporate revenue, 145
trust of, 127 cost drivers, 146
venture capital and, 7–9, 21, 24, 122 critical risks analysis and, 129–130,
women, 3 144
Zach’s Star of Success for, 12–16 CYE in, 21
Entrepreneurship Quotient (EQ), 34 description/explanation of financials
Entry and growth strategy, 81 for, 142, 143
EQ. See Entrepreneurship Quotient due diligence, 18, 53, 58–59
Equity investment, 132, 136 EBITDA, 139–140
Estimates, in financing, financial estimates, creation of, 138–142
management, 142 financial projections, 12–13, 138,
build-up method, 94–96, 140–141 143, 155
comparable method, 94–96, 138–140 financial ratios, 142
investors vs. entrepreneurs, 135 financial statements, 137, 141–142
eToys, 8 five-year projected financials, 143
Executive summary, 43, 49–52, 56 FV, 134–135
Expanded summary, 43 gross margins, 138–139
Expansion, 117 headquarter costs, 149–150
External members, 121–122 income statement in, 52, 138–142,
150–151
Facebook, 1, 4, 9, 45, 99, 100, 165 labeling sections of plan for, 148
Facilities and equipment, 111–112 Lazybones example of, 143–155
FDD. See Franchise Disclosure milestones in growth and, 8–9, 114,
Document 121, 133
Federal Express, 1, 44, 45 networking and, 14–15, 72, 159
Federal Trade Commission, 95 offering plan and, 132–135