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This is a license to sell a company’s goods or services within a certain territory or location. Buying a one gives a person the right to sell an established product.
What is a franchise?
This is all the people and organizations that might purchase a product.
What is a market?
This reports the assets, liabilities, and net worth of the business
What is a pro forma balance sheet?
This reports anticipated flow of income and expenses for the business
What is a pro forma cash flow statement?
This is borrowing money that must be repaid for use in the business. Loans typically come from family, friends, or financial institutions.
What is debt financing?
This is a written statement of goals and objectives for a business with a strategy to achieve them. It is a road map to help an entrepreneur establish and grow a business
What is a business plan?
This provides an overview of the industry and market that the business will serve. It presents the current and projected size of the entire market and identifies competitors.
What is market analysis?
This refers to the way a business is financed. It determines who has control of the business and decision-making power.
What is capital structure?
These are the property or items of value a business owns. The entrepreneur must have property that is worth as much as the amount loaned. Property may include real estate, vehicles, investment accounts, and other items of value.
What are assets?
This is capital brought into the business in exchange for a percent of ownership in the business.
What is equity financing?
This is the gathering and analyzing of information about a business. Market research helps analyze if the idea is feasible. Feasible means that something can be done successfully.
What is market research?
This is the person or company that grants a franchise
What is a franchisor?
These are financial statements based on estimates of future business performance, sales, and expenses.
What are a pro forma financial statements?
This may include company brochures, copies of published articles about the business, and photographs of products. It may include résumés of those in leadership roles as well as permits and contracts.
What is the appendix?
Financial plans are necessary to convince investors to participate in a new business. A new business usually needs this (???) which is the money necessary to start and open a business. It is also known as seed capital.
What is start-up capital?
This is the movement of money into and out of a business.
What is cash flow?
This is an asset pledged that will be claimed by the lender if the loan is not repaid
What is collateral?
This is money invested in a business by investors who form partnerships or groups to pool investments.
What is venture capital?
This is a person or company that buys a franchise
What is a franchisee?
The executive summary is a description of the business and why it will be successful. It should include a ?????, which is a sentence describing the purpose of the business.
What is a mission statement?
This projects revenues and expenses to show whether or not a business is profitable.
What is a pro forma income statement?
These are private investors who fund start-up businesses. The investors expect returns on their investments. However, they generally do not participate in the management of the businesses.
What are angel investors?