001 PRIORITY Flashcards
RECAP
4 growth strats over 2 dims + their assessments
market dev strats diversification strats
penetration strats product dev strats -> use first
Dims:
products (existing to new)
markets (existing to new)
RECAP
internal vs external growth strats
internal = organic
external: from alliances to M&A (but about 5 choices)
RECAP
- business plan def=
- financial plan def=
- = implemented business strategy
- = translation of business plan into numbers
RECAP
Chain of command in CH companies: 4 levels
- shareholders’ assembly
- board of directors > monitor & appraise CEO & mgmt
- CEO
- (upper mgmt)
RECAP
customers can kill you: how, why?
they don’t pay / pay late, and you have had to pay already what you sourced
RECAP
growth strats: accumulated S curves: principle
try to start new one before the previous flattens out
RECAP
most common failure reason for new ventures
premature scaling
= try to grow faster than you have money for
=> balance is needed, even under pressure from investors
RECAP
- sole propriety –>
- LLC –>
- joint stock corporation (Inc., AG…) –>
- unlimited liability
- limited liability (to value of venture assets)
- limited liability (to equity) but with extra flexibility
RECAP study dilution & valuation
loans do not dilute you, even if they come from a VC
RECAP
cashflow statement:
- maxime
- analogy
- 2 components
- “cash is king”
- cash is like oxygen
- income statement + asset statement
RECAP
debt VS equity
+ what?
debt does not dilute ownership
+ there is also mezzanine level, aka callable debt
RECAP
new shares issuance exercise:
2 points to remember
+ 1 suggestion
- new shares are created out of nothing
- Co valuation depends on the last transaction
+ accept all money that does not dilute you, especially if cheap!
