| Week |
Subject |
Related Preparation |
| 1) |
• Describe the course.
• Welcome and course introduction
• Define the entrepreneurial process and the entrepreneur.
• Explain the sources of the entrepreneurial opportunities.
• Define the principles of entrepreneurial opportunities.•
• Explain syllabus
• Who is an entrepreneur?
• Entrepreneurial traits and characteristics
• Six principles of entrepreneurial finance.
|
|
| 2) |
• Recognize the role of entrepreneurial finance.
• Identify the successful venture life cycle.
• Explain financing through the venture life cycle
• Discuss life cycle approach for teaching entrepreneurial finance
• Venture Life Cycles: Development stage
• Venture Life Cycles: Startup stage
• Venture Life Cycles: Survival stage
• Venture Life Cycles: Rapid-Growth stage
• Venture Life Cycles: Early maturity stage
• Seed financing
• First-round financing
• Second-round financing
• Mezzanine financing
• Liquidity stage financing
• Seasoned financing
|
Review the syllabus.
Read, in Leach and Melicher, chapter 1, p.3-41
|
| 3) |
• Recognize the development of business idea
• Identify the sound business model
• Analyze the best practices of successful entrepreneurial ventures
• Explain time-to-market and other timing implications
• Process for identifying business opportunities.
• Sound business model components 1: The business model must generate revenues
• Sound business model components 2: The business model must make profits.
• Sound business model components 3: The business model must produce free cash flows
• Best marketing practices.
• Best financing practices
• Best production or operating practices.
|
Read, in Leach and Melicher, chapter 2, p.41-89
Review the lecture notes.
|
| 4) |
• Explain the Litmus Test
• Discuss how to screen venture opportunities
• Distinguish the key elements of the business plan
• Initial Litmus Test for evaluating the the business feasibility of an idea
• Qualitative and quantitative screening
• Industry/Market considerations
• Management team considerations
• Opportunity screening caveats
• Key elements of business plan: Business description, marketing plan and strategy, operations and support, management team, risk and opportunities
|
Read, in Leach and Melicher, chapter 2, p.41-89
Review the lecture notes.
|
| 5) |
• Explain the progressing through the venture life cycle
• Define the forms of business operations
• Identify choosing the form of Organization: Tax and Other considerations
• Recognize intellectual property
• Recognize the financing sources.
• Identify ethical process in entrepreneurial finance
• Forms of business organization: Proprietorships, general and limited partnerships, corporations, limited liability companies
• Protecting valuable intangible assets
• What kinds of intellectual property can be protected?
• Other methods for protecting intellectual property rights
• Seed, startup and first round financing sources
• Financial bootstrapping
• Business angel funding
• First-round financing opportunities
• Ethical process
|
Read, in Leach and Melicher, chapter 3, p.89-129
Review the lecture notes.
|
| 6) |
• Recognize how to prepare and use the financial statements
• Identify business assets, liabilities and owner’s equity
• Identify sales, expenses and profits
• Recognize internal operating schedules
• Identify the statement of cash flows
• Explain operating breakeven analysis
• Obtaining and recording the resources necessary to start and build a new venture.
• Balance sheet assets, liabilities and owner’s equity
• Income statement
• Statement of cash flows
• Survival breakeven
• Identifying breakeven drivers in revenue projections
|
Read, in Leach and Melicher, chapter 4, p.129-160
Review the lecture notes.
|
| 7) |
• Recognize how to evaluate operating performance
• Recognize how to evaluate financial performance
• Analyze cash burn rates and liquidity ratios
• Analyze leverage ratios
• Analyze profitability and efficiency ratios
• Recognize industry comparable ratio analysis.
• Measuring venture cash burn and build amounts and rates
• Cash related and liquidity related trends
• Measuring financial leverage
• Interpreting changes in financial leverage
• Income statement measures of profitability
• Interpreting changes in profitability and efficiency
• Industry comparison of financial ratios
|
Read, in Leach and Melicher, chapter 5, p.161-197
Review the lecture notes.
|
| 8) |
• Midterm Exam
• Discuss the Midterm Exam.
• Explaining the specifics of the Midterm Exam.
• Solutions of the Midterm Exam (if time permits).
|
Read, in Leach and Melicher, chapter 7, p.227-266
Review the lecture notes.
|
| 9) |
• Identify the types and costs of financial capital.
• Recognize implicit and explicit financial capital costs
• Explain how to determine cost of debt capital
• Explain how to estimate the cost of equity capital
• Explain weighted average cost of capital.
• Determinants of market interest rates
• Risk-free interest rate
• Default risk premium
• Liquidity and maturity risk premiums
• Venture debt capital
• Cost of equity capital for public corporations
• Cost equity capital for private ventures
• Sources and costs of equity capital
• Weighted average cost of capital
|
Read, in Leach and Melicher, chapter 7, p.227-266
Review the lecture notes.
|
| 10) |
• Identify the growth planning
• Recognize long-term financial planning throughout the venture’s life cycle
• Explain the systematic forecasting
• Explain how to estimate sustainable sales growth rates
• Recognize additional financing needed to support growth
• Explain the percent of sales approach
• Forecasting sales for seasoned firms
• Forecasting sales early-stage ventures
• Sustainable sales growth rate
• Estimating additional funds needed
• Forecasting sales
• Projecting the income statement
• Projecting the balance sheet
• Forecasting the statement of cash flows
• Financing cost implications associated with the need for additional funds.
|
Read, in Leach and Melicher, chapter 9, p.319-351
Review the lecture notes.
|
| 11) |
• Identify venture capital valuation methods
• Identify basic cash-flow based equity valuation
• Explain basic venture capital valuation methods
• Recognize earnings multipliers and discounted dividends
• Evaluate valuation rounds
• Cash-flow based equity valuation
• Using present values
• Using future values
• First and second rounds for adjusting for VSCSs.
• Incentive ownership round
• Introducing scenarios to VCSCs.
|
Read, in Leach and Melicher, chapter 11, p.399-446
Review the lecture notes.
|
| 12) |
• Explain venture investing cycle
• Recognize the organizing the new fund
• Identify soliciting investments and obtaining commitments for a series of capital calls.
• Explain how to conduct due diligence and assess actively investing
• Discuss other financing alternatives
• Venture investing cycle
• Investment in the new fund
• Due diligence
• Commercial and venture bank lending
• Small business administration programs
• Other government financing programs
• Mortgage lending
• Direct public offers
|
Read, in Leach and Melicher, chapters 12&13, p.447-500
Review the lecture notes.
|
| 13) |
• Identify the working capital management
• Identify the inventories ,credit management, concept of cash and marketable securities
• Recognize the sources of short-term borrowing
• Define the concept of merger.
• Discuss the motives for mergers
• Analyze the mechanics of a merger.
• Discuss the business ethics with regard to mergers.
• The inventory trade-off
• Credit analysis and collection policy
• Cash management
• Types of marketable securities
• Bank loans, commercial paper and medium-term notes
• Mergers: Economies of scale, economies of vertical integration, surplus funds and industry consolidation.
• The forms of mergers and acquisitions.
|
Read, Brealey-Myers-Allen, chapters 30&31, p.757-821
Review the lecture notes.
|
| 14) |
• Review the lectures covered.
• Review.
Study for the Final Exam
|
Review the lecture notes. |
| 15) |
• FINAL EXAM |
|
| |
Program Outcomes |
Level of Contribution |
| 1) |
Explain the essential body of knowledge in the area of business administration, including evolution of the discipline, the state-of-the-art concepts, scientific methodology, theories and models |
|
| 2) |
Employ the appropriate tools and analytical techniques to collect and analyze quantitative and qualitative data in the related areas, interpret results and propose solutions |
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| 3) |
Recognize the importance of technological development, especially in information technologies, and utilize them in business administration |
|
| 4) |
Evaluate the body of knowledge in the dynamic business world and business functional areas to asses needs, manage and lead change by using critical and innovative thinking |
|
| 5) |
Discover and create entrepreneurial opportunities and expertise to successfully establish and develop their own ventures |
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| 6) |
Fulfill their responsibility in teamwork and projects in businesses, and act as a leader |
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| 7) |
Communicate in written and oral English with people from diverse backgrounds, and have the English proficiency to follow and interpret the global dynamics in the areas of business administration |
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| 8) |
Recognize individual and multi-cultural diversity, and can emphatically interact with individuals from diverse cultural backgrounds in social and professional settings |
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| 9) |
Identify standards of personal, professional, social and business ethics, evaluate the ethical implications of various practices in the related areas, and be aware the importance of ethical behavior in adding value to the society |
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| 10) |
Recognize interrelationship among business and other disciplines, and relate knowledge from diverse areas to formulate novel solutions in the area of business administration |
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