Ratios
What is the ratio that Current Assets/Current Liabilities is called?
The "Current Ratio"
This what most new business ventures do and should always be stated in a pitch
The Problem being solved.
We think of this type of statement when thinking about financial projections.
What are Pro-forma Statements?
This term is used when a business wants to know how long they have before they run out of money.
What is the new ventures "Runway"?
You can get a SBA backed loan from this funding source
What is a bank?
If you compare one year of financial data to another year, you are most likely speaking of
Horizontal Analysis
The name of the three credit agencies
What are Experian, Transunion and Equifax?
This statement is a summary of the revenue and expenses of a business over a specified period of time.
What is the income statement?
This term is used when a company is starting to generate revenue in such a way that the business model is validated.
What is "Traction"?
These investors expect a 10 times return on their investment.
What are Angel Investors?
This type of analysis would be used to compare a certain expense to the amount of net sales.
What is vertical analysis?
Character, Capacity, Capacity, Collateral and Conditions are known as the
What are the 5 C's?
This amount is added to the COGS to determine it's sales price.
What is a markup?
This type of Canvas is usually used for an existing business.
What is a Business Canvas
These investors are paid professionals who invest in new ventures that typically are generating revenue and would invest after friends and family and Angel Investors.
Who are Venture Capital Investors.
A company with short term challenges regarding paying it's bills would have this current ratio.
A current ration of less than 1.
In lieu of cash and to allow a business to startup, new venture founders should seriously consider this
What is Bootstrapping?
Are the three types of financial statements that most new ventures create and most existing businesses have to provide to investors.
What are the Balance Sheet, Income Statement and Cash Flow statement?
These are types of revenue models (some refer to as business models) that can be used by a business.
What are B2C, B2C, etc.?
These investors are called this because they have over $1 million in assets not including their home.
What are accredited investors?
This would be the projected increase in sales if this years sales are $900k and next years is $950K.
A 5.56% increase in sales projected.
These are the two major reasons businesses fail according to Lee.
Poor Timing and Lack of Preparation.
These are assumptions.
This is part of the Lean Canvas that makes a single, clear, compelling and differentiating message that turns an unaware customer into an interested prospect.
What is the unique value proposition?
This is the sale of securities directly to a private investor, rather than as part of a public offering.
What is a private placement?