Financial literacy is one of the fundamental keys to business success, and this ground-breaking textbook teaches students the necessary financial skills required by entrepreneurs.
Presenting an abundance of case studies and examples throughout, the book uses a step-by-step approach which will develop the reader's knowledge of the three key financial statements: profit & loss, balance sheet and cash flow. It explains the various considerations for raising capital: the requirements of banks, business angels, crowdfunding platforms, and venture capitalists, along with details and pitfalls of term sheets. Finally, it suggests ways of using accounting data to create a financially intelligent business and achieve business success. The authors impressive background as successful entrepreneurs and business angels underscores the highly practical and useful coverage offered, whilst Simon Hulmes teaching experience tailors it to fit student needs perfectly.
Entrepreneurial Finance is a refreshingly easy-to-grasp introduction, especially suitable for those who find this topic daunting. Visually appealing and engagingly written, this book, together with its range of bespoke digital resources, succeeds in breaking down complex concepts and communicating them with clarity. The ideal resource for university students taking entrepreneurship and business courses, it will also be valuable for entrepreneurs who wish to scale their business, as well as managers seeking to consolidate their understanding of entrepreneurial finance.
1. INTRODUCTION
1.1 Purpose of Accounts
1.2 Setting the Scene
2. PROFIT & LOSS
2.1 The Profit & Loss Statement
2.2 The Importance of Gross Profit
2.3 Product Pricing Structures
2.4 Accrual Accounting
2.5 Depreciation
2.6 Break-Even Analysis
3. THE BALANCE SHEET
3.1 The Balance Sheet Statement
3.2 A Tour of the Balance Sheet
3.3 Analysing the Balance Sheet
3.4 Balance Sheet Examples
3.5 Returning to the Balance Sheet Formula
4. CASH FLOW MANAGEMENT & FORECASTING
4.1 The Cash Flow Statement
4.2 The Cash Conversion Cycle
4.3 Improving Cash Flow
4.4 The Cash Flow Forecast
4.5 Building a Financial Model
5. FINANCIAL CAPITAL
5.1 Sources of Capital
5.2 Debt Funding
5.3 Understanding Share Capital
5.4 Sources of Equity Funding
5.5 The Equity Funding Process Explained
6. CAPITAL INVESTMENT APPRAISAL
6.1 Introducing Capex Appraisal
6.2 The Payback Method
6.3 Net Present Value
6.4 Internal Rate of Return
6.5 Establishing The Discount Rate
6.6 Applications of Capital Investment Appraisal
7. RUNNING A FINANCIALLY INTELLIGENT BUSINESS
7.1 A Financially Intelligent Business
7.2 The Annual Budgeting Process
7.3 Management Accounts
7.4 Trailing 12 Month Graphs
7.5 Looking to the Future.
