...conflicts of interest and advising all appropriate parties of any potential conflict. Additionally, they must refrain from engaging in any activity that would prejudice their ability to carry out their duties ethically. Finally, they must have credibility, by disclosing all relevant information that could influence an intended user's understanding of the reports, comments, and recommendations presented. In the Andahl Logistics Case, the executive staff of Andahl made several suggestions for salvaging the company’s short time operating results: A. Stop all transatlantic shipping efforts. The startup cost for the new operations are hurting current profit margins. B. Make deep cuts in pricing through the end of the year to generate additional revenue. C. Pressure current customers to take early delivery of goods before the end of the year so that more revenue can be reported in this year’s financial statements. D. Sell off distribution equipment prior to year-end. The sale would result in one-time gains that could offset the company’s lagging profits. The owned equipment could be replaced with leased equipment at a lower cost in the...
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...particularly difficult to begin. Not only can a restaurant be one of the hardest businesses to start and keep running, the target audience is much more particular also. The first question someone will have to ask when beginning any new business is, where is the money coming from? How will the business get bankrolled from startup costs to operating cost before enough transactions happen before profits start to show? This paper will analyze three options to financing this new restaurant. Financing Options The first consideration of where financing will come from is personal assets. According to the U.S. Small Business Association, a person is not eligible for any financial assistance without first "using alternative financial resources, including personal assets" . First, the amount of cash on hand needs to be determined that will be able to be used to help with startup costs. Because a solid business plan has already been put together, a close estimate to startup costs has been determined. The startup cash needed may come from money already set aside in a savings account, or it could come from selling personal items to help raise cash. Some items needed for business startup such as office furniture, storage equipment or computers may be used from the personal inventory that the person may already have or are able to borrow from a family member. Another method of financing a new business is through small business loans. If credit and financing is difficult for some individuals, the...
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...Part 5: Financial Issues | Low Potential (-1) | Moderate Potential (0) | High Potential (+) | 1. Initial capital investment | High | Moderate | Low | 2. Number of revenue drivers (ways in which the company makes money) | One | Two or three | More than three | 3. Time to break even | More than two years | One to two years | Less than one year | 4. Financial performance of similar businesses | Weak | Modest | Strong | 5. Ability to fund initial product (or service) development and/or initial startup expenses from personal funds or via bootstrapping | Low | Moderate | High | 1. Company is still in early stages. Initial capital investment can potentially come from owners and family relatives. The investment can remain low during our product development. However, since the product is quite complicated and high tech, the capital investment may continue to scale and the company need to find the right investors. Chapman, Lizette. "GoPro Going for IPO, Venture Investors Go for Gold." Venture Capital Dispatch RSS. N.p., 7 Feb. 2014. Web. 09 Feb. 2015. Clark, Bill. "How Much Capital Should You Raise for Your Startup?" MicroVentures Blog. N.p., 25 Nov. 2014. Web. 09 Feb. 2015. 2. We will begin by creating a prototype and visually show people how the product works through screens in Photoshop. Once we get a good amount of potential customers, we will then build a functional prototype and attract people through blogs, emails, and launch parties. Kickstarters...
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...To: Professor Date: 07/20/2015 Subject: Organizing a Business Business Brief As a nursing home administrator, I have the knowledge and history required to understand how healthcare organizations run. I have a passion for seniors, and ensuring they are well taken care of. As an administrator in the healthcare field, I strive for quality care and I am familiar with how to manage these types of facilities. With that being said, I would like to own a greenhouse nursing facility. Why Greenhouse Nursing While nursing homes provide long term, and in some cases short term, nursing care to residents, many people have negative conceptions about nursing homes. Unfortunately, many times nursing homes neglect to provide choice and freedom to residents. A greenhouse nursing facility provides similar services to their residents, such as nursing care and assistance with daily living. However, every other aspect is much different. Rather than providing these services in a large facility with fifty to two hundred beds, a greenhouse nursing facility only provides care to five to ten residents at a time. This allows more personalized, individualized care. These facilities are actual houses, rather than institutionalized buildings. I would love to own one of these houses. I have the healthcare knowledge to own/operate a facility like this. I am passionate about this kind of work, and would like the opportunity to give seniors a better quality of life. This greenhouse, perhaps...
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...focus on niche areas in which we provide significant value and are invariably involved in select highly complex, innovative transactions. Our key clients include marquee repeat Fortune 500 clientele. Our practice areas include Mergers & Acquisitions, Private Equity Investments, Corporate & Securities Law, Competition Law, JVs & Restructuring, International Tax, International Tax Litigation, Litigation & Dispute Resolution, Fund Formation, Capital Markets, Employment and HR, Intellectual Property, International Commercial Law and Private Client. Our specialized industry niches include funds, financial services, insurance, IT and telecom, pharma and healthcare, media and entertainment, real estate and infrastructure & education. Nishith Desai Associates has been ranked as the Most Innovative Indian Law Firm (2014 & 2015) at the Innovative Lawyers Asia-Pacific Awards by the Financial Times - RSG Consulting. Nishith Desai Associates has been awarded for “M&A Deal of the year”, “Best Dispute Management lawyer”, “Best Use of Innovation and Technology in a law firm” and “Best Dispute Management Firm”, by IDEX Legal 2015 in association with three legal charities; IDIA, iProbono and Thomson Reuters Foundation....
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...Bootstrapping Bootstrapping is one of most effective and economical method to ensure companies positive cash flow. Less money has to be borrowed when using methods of bootstrapping, and interest costs are reduced (Gordan, 2015). However, companies need to preserve its capital with a viable business tactic that enables capital to be preserved. New startup companies or companies that have been existence for a certain timeframe; the business owner must understand that access to capital is the key element for business growth and expansion. In the early phases of starting a business; business owners can obtain capital from relatives, friends, or credit cards of their own to launch their businesses. Irrespective of the industry the business chooses to capitalize in, the business needs a location to operation company products and services to deliver together efficient means of operations (Gordan, 2015). Currently in the present economy, businesses are competitive with one another, and to own and operate a business is proving to be costly. Bootstrapping In business, there are direct and indirect expenses that are required on a monthly basis. However, if an entrepreneur wants to be successful, adding staff personnel, materials and increase marketing strategies in order to remain competitive to see continuous growth is essential. However, this might not be probable without a viable capital base (Bulman, 2005). Some business use the means of credit cards to help in financing...
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...Alex Herrick Kayla Mc Kenzie 800-4digits www.digitscan.com Table of Contents Introduction and Overview 3 Products and Services 5 The Market and Competition 6 Sales and Marketing Plan 9 Management Team 12 Go-to-Market Strategy 13 Operating Plan 14 Key Financial Information 16 Capitalization and Use of Funds 18 Exit Strategy or Payback Analysis 18 Notices and Disclaimers 18 Introduction and Overview Digit Scan will provide the Digit scanner for hospitals, doctors, EMT’s as well as any other business and or organization which needs to use data base of information to provide their clients and or patients with the utmost accurate and secure services. Digit Scan will be especially helpful to customers who deal with clients with medial issues or for people who need to identify their customers records in a discreet and accurate manner. The company has a promising future due to the growth rates currently being seen in the biometric field. As the founder of this new business, we are familiar with bring important experience to the business, including [insert a sentence or two describing your experience, include industry experience, startup or small business experience, and even community involvement that shows your character]. I am most optimistic about the ability to start, sustain and grow [Digit Scan] because [insert your reasons—people want to know that you are excited about the business]. Current Business Structure ...
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...financing for startup companies and, also, build strong platform for further financing. Since it is difficult for new companies to raise capital in public markets, VCs are necessary intermediaries. Another role of VCs is to determine good business models and ideas worth investing from bad ones. They need to identify startups that have high potential to become great solid companies and provide high returns for their investors. Therefore, most venture capitalists are savvy professionals with the backgrounds in corporate finance, investment, and management. Investment Bank Underwriters Main role of investment bank underwriters is to provide their expertise and financial services, such as price IPO or underwrite shares, when a company wants to go public. In addition, since most investment banks are well-known institutions with good reputations they play significant role in introducing new companies to investors. Sell-Side Analysts As the name speaks for itself, the central focus of these intermediaries is to conduct and then publish research on public companies. A sell-side analyst closely studies a company of interest and based on his or her findings makes a recommendation to buy, sell, or hold this company’s stock. It is challenging tedious process requiring specific knowledge and considerable amount of time devoted. Many investors have no such expertise and thus rely greatly on analysts’ recommendations. As Paul-Choudhury correctly noted in his article "Option Bubbles" “if...
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...investment and its ability to service the said funds if presented with the adequate funding from your bank. Our entity regards entry into the European market as high priority project due to the potential of the market to grow exponentially. Summary of issues • The entity shows a constant decline in profits for three consecutive periods from the beginning of the financial year 12 to the period through the financial year 14. This might be an indication to the chief financial officer that the entity’s profitability level is on the decline. Thus, the officer might be forced to reject the plea for the loan to avid default from the entity, as it might be unable to complete repayment of the loan from its residual funds after the deduction of operational costs. • In addition, there was a significant increase in general costs and administration expenses within the organization. This might be accrued from the increase in costs of doing business. However, from another perspective, administration costs might also be accrued from mismanagement of the organizational resources. Analysis of data and Errors Analyses of financial ratios in terms of loan repayment include: • Debt Ratio = Total Debt/Total Assets $750,000/$1,781,546 = 0.42 or 42/100 The entity has a very healthy debt ratio. This proves that the organization could be able to undertake more debts for other purposes. In addition, the entry into the new market would also...
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...The Knot Entrepreneurial Finance Wouter Buijze: 6172466 Tijmend de Vries: 5947472 Gijs Derkzen: Teacher: Vladimir Vladimirov Critical success factors According to Sahlman, the success of entrepreneurial ventures, such as The Knot, is dependent on four critical success factors, namely the people, the opportunity, the deal and the context. Each of these factors is dynamic and the entrepreneur must constantly reevaluate and adjust the four factors to create value. People The category people include the key players of the entrepreneurial venture. Within this category, the strengths and weaknesses and the experience of the people involved is critical. The entrepreneur has to determine if something is missing in the team, thus if people should be added or replaced. The Knot’s management team consists of four ex New York University’s Film School students. All of them are experienced entrepreneurs. First, Liu and Roney are co-founders of the CD-ROM development company RunTime Inc. Pervious, Liu was an experienced manager and Roney spent six years as creative director and editor. Second, Wolfson and Fassino are founders of the Digital Media Division for Margeotes Fertitta + Partners. Before, Wolfson was founder of a creative production company and Fassino has experience in the advertising industry. The two different companies successfully collaborated at the Sotheby’s project. The four partners emphasize the potential of their collective experience and know-how, including...
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...did a good job identifying the main points of the situation analysis. However, it did not clearly label which points are internal and which are external to the case. We would also recommend including the following missing points into SWOT: One of additional strengths that we would include is the high quality of the ice cream and “super premium” ingredients that Marble Slab uses in its products. Penny Thomas can use this strength to the benefit of her promotion strategy to stress brand differences to better position the franchise against its competitors. Another strong characteristic of a franchise is assistance with expertise in areas like financing, real estate and marketing. This is a major advantage for a startup company, where potential financial risks can be minimized due to backing by the head company. A weakness that was not pointed out is relatively high pricing of Marble Slab offerings. This weakness indicates that Penny Thomas will have to target a market of customers who would be willing to pay for “affordable luxury.” An additional opportunity that we would suggest to list is changes in tastes. While the rich and flavorful taste of original ice cream is still more appealing to the majority, there might be an increase of followers of ongoing trends towards healthy eating. This trend can negatively affect ice cream sales. We can also suggest two more threats that can possibly affect Marble Slab franchise operations in the future. The entrance...
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...work to create a curated resource for creative entrepreneurs. This book is the teaching and inspirational aid for our kbs+ Ventures Fellows – a highly select group of kbs+ staffers from all levels and areas of the agency – who go through a six-month educational program to immerse themselves in the startup and venture capital world. Share this entrepreneurial inspiration with friends using @kbspvc or #kbspvcbook. If you would like to share any inspiration, thoughts or feedback, please contact us at @kbspvc anytime – we look forward to hearing from you. Thank you for downloading our book! Darren Herman Taylor Davidson Creative Entrepreneurship Darren Herman Taylor Davidson a kbs+ partner We have received explicit permission from all authors of the works found in this book. Unless otherwise stated, we do not claim to have written or own any of this work. We are purely aggregating it into a simple book format for the education of anyone who picks up this book. The price of this book is free; if anyone tries to sell this book to you, please report them to us. Hopefully this book inspires you as much as it does us. We do not guarantee you will start the next successful startup after reading this book but we do think it will make you at least one IQ point smarter. Enjoy it and after you are done with it, hand it to someone else to read. Sharing means caring. The author and publisher have taken care in the preparation of this book, but make no expressed or implied warranty...
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...0 | Capital Expenditure Budget | | | 4 | 4.0 | Investment Analysis | | | 4 | | | 4.1 | Cash flows | 4 | | | 4.2 | NPV Analysis | 5 | | | 4.3 | Rate of Return Calculations | 5 | | | 4.4 | Payback Period Calculations | 5 | 5.0 | Pro Forma Financial Statements | | | 6 | | | 5.1 | Pro Forma Income Statement | 6 | * 1.0 Executive Summary 1.0 Executive Summary * * The Cutting Edge Landscaping is a business that offers specialized crafting and manicuring of lawns in the Miami, Florida area. We bring experience and the option for our customers to customize the lawn of their dreams with the help of our design team. Products offered include: regular lawn servicing, water gardens, fountains, local and exotic plants and flowers. We will give our customers the best curb appeal in Miami. Our professionals will also service light irrigation repair and cleanup post severe inclement weather. * * In the budget plan, we will detail how we intend manage our cash flows while increasing our clients and build a profitable business. * * This budget reflects the operational growth for the first five years our business is in production. The initial investment requirement at startup is $183,095.00 of which a loan for the full amount was invested. We will be able to fully pay this loan back at our discretion within the first five years of business at a lower interest rate. The NPV for the Investment is $374,681.74, which shows that this is...
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...the amount claimed so far. Claiming depreciation gets you a slight tax break (say 15% to 35%). Prices go up in the mean time. Corporations generally invest in debt or stock securities for one of these three reasons: Corporations may have excess cash, to generate earnings from investment income, and for strategic reasons. A large technology, drug or medical device company may invest in a promising startup that is developing new products which may be complementary to the buyer's product line. If the new technology holds promise, the buyer may buy the startup outright and make it a secondary if not, the buyer may sell or write off the investment. The rationale is simple, it is often cheaper to invest in a startup than to develop a new technology in-house, besides, stock ownership gives the buyer the right to examine the books and become privy to inside information. Large technology companies such as Intel or Cisco have large portfolios of technology startups through their venture capital arms. Companies may elect to use the fair value measurement option at the time the financial instrument is originally recognized or when some an event triggers a new basis of accounting. Market to market accounting can change values on the balance sheet frequently. In contrast the historical cost is based on the past transactions. Valuation guidelines are mainly useful to compare the market value of investments with book value of investments. An investment can be accounted for by the cost...
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...an investor but does not want to work for the company. Jackson’s sister, Kelsey, would like to work for her but her husband would prefer that she continued her duties as a stay at home mom. Jackson’s neighbor, Carlos, thinks the idea of a Christian coffee house would sell well because of local demographics and religious preferences. She must also cipher through state regulated laws in order to determine how she will structure her business. Business Forms Based on brief research Shania has decided to keep her options open regarding the classification of her business. Her research on business forms included: sole proprietorships, general or limited partnership, corporation, limited liability company (LLC), or a joint venture. It is important that Jackson establishes potential partners or investors before making a decision a final decision as this information will need to be included in the businesses articles of incorporation. Jackson has not stated any secured startup capital other than personal money and a potential investment from her husband, Marvin. The CPA Journal suggest that an LLC is a sure way to establish your business because it is a relatively low-cost way to legally establish your business, filing taxes are much simpler and individual owners and operators of the business are secured under liability protection (Hopson, 2014, p.43). LLC Or Corporation informs entrepreneurs to incorporate or form LLCs in order to...
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