This study guide gives an overview of the relevant chapters of the book of Leach & Melicher, Entrepreneurial Finance, 4th edition. The parts of the chapters that you have to study are indicated, and a number of exercises are suggested. Answers to these exercises will be available on Black Board after the corresponding lecture took place.
Chapter 1 Introduction and overview
Understand figure: life cycle approach: venture operating and financial decisions
Basic introduction, read through. The life cycle approach (fig 1.5 page 29) is followed rather loosely in the book, and it does not play a major role in the structure of the classes.
Exercises: 6 and 7. (note: these exercises are quite straightforward, don’t think too much of them)
Chapter 2 From the idea to the business plan
Understand the parts of a Venture opportunity screening
Understand the parts of a business plan
Study completely. The business model is that which allows you to make money, and the business plan puts in writing how you are going to do that. There is not much theory behind them (look at fig 2.2 page 44 best practices of High-Growth, High-Performance Firms. The venture opportunity screen section 2.6 and the Appendix will be applied in one of the Student Group case discussions, and the business plan will also come back.
Exercise: mini-case Learningbeam.com
Chapter 3 Organizing and financing the new venture
Read the business organizational forms (do not learn)
Understand the examples of seed and startup financing
Only read section 3.1 and 3.5. Some of these aspects are also dealt with by a Student Group Presentation.
Exercise: none
Chapter 4 Measuring financial performance
Understand all the key terms and summary! PSA example has all the information
Accounting is essential, especially for entrepreneurs, so there is no getting around this. Section 4.2 to 4.5 explain basic financial