You know their names today, even though they made their mark 100 years
ago and more. Cornelius Vanderbilt (railroads), Andrew Carnegie (steel),
John D. Rockefeller (oil), Marshall Field (retailing), and Henry Ford
(automobiles) left an enduring legacy of innovation, market dominance, and vast fortunes. They are among a handful of extraordinary entrepreneurs
who not only achieved great wealth, but also won international
Nanotechnology entered the more public arena in 2001 when President Clinton
brought worldwide attention to nanotechnology through his budget approval for the
US National Nanotechnology Initiative (NNI). The initial budget allocated for
nanotechnology in 2001 was $422 million, which demonstrated the anticipated
relevance of nanotechnology to the USA economic growth as well as nanotechno-
logy’s strategic importance to national security. Three years later, in December
Franchising is one alternative for expanding a successful, existing business. Franchises are
generally of two varieties. The franchisee purchases the rights to a single location or buys a
master franchise to develop an area (i.e. multiple locations that may then be sub-franchised
within a given geographic territory).
When a business is franchised, a specially prepared contractual relationship (joint venture) is set
up between the successful established business (the franchiser) and the hopeful buyer
(franchisee) concerning sale and lease.
I typically call for five years of financials, recognizing that the farther out one goes, the less accurate the forecasts are. The rationale behind five years is that the first two years show the firm surviving and the last three years show the upside growth potential. The majority of new ventures lose money for the first two years. Therefore, the income statement and cash f low statement should be month-to-month during the first two years to show how much cash is needed until the firm can become self-sustaining. ...
Fueled in part by some extraordinary theoretical developments in finance, an explosive growth of information and computing technology, and the global expansion of investment activity, investment theory currently commands a high level of intellectual attention. Recent developments in the field are being infused into university classrooms, financial service organizations, business ventures, and into the awareness of many individual investors. Modern investment theory using the language of mathematics is now an essential aspect of academic and practitioner training....
Variation margin An additional required deposit to bring an investor's equity account up to the initial margin level when the balance falls below the maintenance margin requirement. Venture capital An investment in a start-up business that is perceived to have excellent growth prospects but does not have access to capital markets. Type of financing sought by early-stage companies seeking to grow rapidly.
Vertical acquisition Acquisition in which the acquired firm and the acquiring firm are at different steps in the production process.
In addition to retained earnings or proﬁ ts, ﬁ rms can access investment capital from a number of
other sources: banks; the sharemarket; private equity; the venture capital market; and informal
capital markets. Improving ﬁ nancial development in these markets can stimulate economic
growth. The Milken Institute’s Capital Access Index evaluates the ability of business to access
capital across all sources. New Zealand is ranked 15th in the OECD on this index, at the OECD
mean and below countries such as the United Kingdom, the United States, Denmark, and
Lloyds TSB has been involved in a wide range of projects, providing capital for loan funds
to business start-ups, micro-businesses and social enterprises. The creation of Community
Development Venture Funds was one of the five recommendations of their Social Investment
Task-force to meet the needs of growth businesses unable to attract traditional capital to
fund that growth. Since the creation of this task-force Lloyd’s TSB has contributed to a wide
range of programmes creating a favourable environment for entrepreneurs willing to invest
in under-served communities.
This chapter describe the process of moving from an idea to a business plan; understand the components of a sound business model; identify some of the best practices for high-growth, high-performance firms; understand the importance of timing in venture success; describe the use of a SWOT analysis as an initial “litmus test”;...