PowerPoint 1 Flashcards
Which are the Steps for a Business ?
- Idea
Funding – own savings - Prototype
Funding – “family, friends and fools” - Development
Funding – Business Angel - Scale up, …
Funding – Venture Capital, … investment banks
What’s SWOT analysis ?
Strengths Weaknesses Opportunities Threats analysis
* Understand firm’s Strengths and Weaknesses
* Read the Opportunities and Threats from the broad and near business context
Things needed to know about the customers/target market ?
Who? What needs?
* Characteristics - Know your customer
* Target size? And growth?
* Willingness to pay?
* Repeated buys/amounts?
Things needed to know about the Competition ?
Who? How many?
* Dimension?
* Location?
* How different from your solution/unique value?
Things needed to know about the GO-TO-MARKET ?
- Placement/Distribution
- Promotion/Communication
Things needed to know about the Revenue Model ?
- Pricing (e.g., cream skimming, bundle discount, seasonal, two-part tariff, early bird)
- Assistance after sell: Consummables; Maintenance
- Additional/change features; Pack
- Avertising; Freemium; Clicks/views
Things needed to know about the Team ?
- Human resources
What fields? How many? - Organization and communication
Things needed to know about the Development plan ?
Chronology – milestones
* Main objectives?
* Strategies?
Things needed to know about the Operations ?
Depending on product/service , target and marketing mix
Which are the phases of the Development Plan ?
Formulate business idea
Prototype
Hire personnel
Raise (seed) funds
Market testing
Starting the operations
Communication and distribution
First sale
Strategy redesign
R&D
Things needed to know about the Risk and Options ?
- What are the main risks and difficulties?
- What are the options?
- What is the exit option?
What is the Financing needs ?
investment (non current assets and working capital) and and early losses
What are the different types of assets ?
Non-current assets (e.g. Equipment, Patents)
Current assets (e.g. Inventories, Accounts receivable)
What are the different types of Liabilities ?
Equity
Long-term debt (e.g. Loans)
Short-term debt (e.g. Accounts payable)
How do you calculate the working capital ?
working capital = current assets - short-term debt
What is the Income statement important for?
for supporting break-even analysis and operating cash-flow
What are the different types of Revenues ?
Operating revenues (e.g. Sales, R&D)
Financial revenues (e.g. Interest, Fees)
What are the different types of Costs ?
Operating costs (e.g. Materials, Wages)
Financial costs (e.g. Interest, Fees)
How can we know if we having profit or loss ?
Profit = if Revenues > Costs
Loss = if Revenues < Costs
What is used for Project Evaluation ?
Operating cash flow; investment, and residual value of project
* Break-even;
* Criteria: Payback period; Internal Rate of Return; Net Present Value
What’s the Payback period ?
how many periods to recover investment
What’s the Internal Rate of Return ?
points out the highest cost of capital; obtained as the discount rate that makes NPV=0
What’s the Internal Net Present Value (NPV) ?
net cash-flow evaluation taking into account the actual cost of
capital
