Sources of Capital
Business Ideas/Formation
Beginnings of a New Firm
Business by the Numbers
What do the Numbers Mean?
100

Include firms in their development, startup or survival life cycle states.

Early Stage Ventures

100

An analysis of strengths, weaknesses, opportunities and threats to determine business viability.

SWOT Analysis

100

Basic legal declarations contained in a corporate charter.

Articles of Incorporation

100

The practice of recording economic activity when recognized rather than realized.

Accrual Accounting

100

Shows the relationship between two or more financial variables

Financial Ratios

200

Wealthy individuals acting as informal or private investors who provide venture financing for small businesses

Business Angels

200

Assessment of an idea's commercial potential to produce revenue growth, financial performance and value.

Venture Opportunity Screening

200
Owned by members with limited liability with earnings generally taxed as a partnership.

LLC

200

The speed at which an asset can be converted to cash.

Liquidity

200

Important users of financial ratios and measures in order to make lending decisions.

Commercial Banks

300

Risk and expected reward go "hand-in-hand"

A principle of entrepreneurial finance

300

The process of minimizing resources such as the need for financial capital and finding unique sources for financing a new venture.

Bootstrapping

300

An agreement between an employer and employee about the terms and conditions of employment including the employees agreement to keep confidential information secret and to assign ideas and inventions to the employer.

Employment Contract
300

The amount of revenues just offsetting variable and cash fixed costs.

Survival Revenues

300

Used to examine a venture's performance over time.

Trend analysis

400

The last stage in a successful venture's life cycle.

Early-maturity stage

400

The first component of a sound business model.

Revenue Generation
400

Types of intellectual property

Patents, trademarks, trade secrets and copyrights

400

The portion of a sale of a product that contributes to covering cash fixed costs.

Contribution Margin

500

Advise and assist ventures on the type, timing, costs of issuing new debt and equity securities and facilitate the sale of firms.

Investment Banking firms

500

Business organization characterized by having the shortest start-up time and lowest legal cost.

Sole proprietorship

500

Cost of production schedule, COGS schedule, Inventories Schedule

Internal Operating Schedules