Finance
Explain the "Hire Purchase" form of financing
Purchase assets over a period of time by making regular payments
Define the Business plan
formal written document setting out what your venture seeks to achieve and how it will achieve that
Explain the Cross-elasticity of demand
how demand reacts to changes in price
➝ The more differentiated the product, the more price in-elastic the demand
➝ The more of a commodity the product is, the more price-elastic the demand
Explain the "Overdraft finance" concept
an agreement whereby you dip into funds when you need it, and only pay interest when you use it
What does include the "Operation plan"?
Partnerships - Business controls - IP issues
Explain the "Schumpeterian view"
opportunities emerge out of entrepreneurs’ internal disposition to initiate or create change
Why do women avoid external funding?
Risk aversion - Perceived obstacles - Lack of social capital - Aversion to loss of control
What is "analysis paralysis"?
spending too much time researching a plan while you should not be doing more planning than strictly necessary
Explain the concept of "Lean start-up"
launching the product not in a ‘perfect state’ but in a ‘minimum viable state’, and later refined using customer feedback
Purpose of the projected future gearing ratio?
to see whether the business might become over-borrowed
Meaning of "Due diligence"
When raising finance investors undertake their own investigations (called due diligence)
What is the Twilight zone of risk?
area of competitive advantage for entrepreneurs in comparison to large companies, due to being able to handle continuous market changes by bundling new combinations of products with markets