Getting Financing or Funding

The Importance of Getting Financing or Funding

Most New Ventures Need Financing or Funding

Sources of Personal Financing

Preparing to Raise Debt of Equity Financing

Preparing an Elevator Speech

Sources of Equity Funding

Business Angels

Venture Capital

Initial Public Offering

Sources of Debt Financing

Commercial Banks

SBA Guaranteed Loans

Creative Sources of Financing or Funding

Leasing

SBIR and STTR Grants

Strategic Partners

Strategic Partners

Chapter Objectives

1. Explain why most entrepreneurial ventures need to raise money during their early life.

2. Identify the three sources of personal financing available to entrepreneurs.

3. Provide examples of how entrepreneurs bootstrap to raise money or cut costs.

4. Identify the three steps involved in properly preparing to raise debt or equity financing.

5. Discuss the difference between equity funding and debt financing.

6. Explain the role of an elevator speech in attracting financing for an entrepreneurial venture.

7. Describe the difference between a business angel and a venture capitalist.

 8. Explain why an initial public offering (IPO) is an important milestone in an entrepreneurial
venture.

9. Discuss the SBA Guaranteed Loan Program.

10. Explain the advantages of leasing for an entrepreneurial venture.

Unique Marketing Issues

Selecting a Market and Establishing a Position in the Market

The Process of Selecting a Target Market and Positioning Strategy

Market Segmentation

Selecting a Target Market

Establishing a Unique Position

Selling Benefits Rather Than Features

Establishing a Brand

The Four Ps of Marketing for New Ventures

Product

Price

Promotion

Place (or distribution)

Public Relations

Public Relations Techniques

Chapter Objectives

1. Explain the purpose of market segmentation.

 2. Describe the importance of selecting a target market.

3. Explain why its important for a start-up to establish a unique position in its target market.

4. Describe the importance of the ability to position a company’s products on benefits rather
than features.

5. Illustrate the two major ways in which a company builds a brand.

6. Identify the four components of the marketing mix.

7. Explain the difference between a core product and an actual product.

8. Contrast cost-based pricing and value-based pricing.

9. Explain the differences between advertising and public relations.

10. Weigh the advantages and disadvantages of selling direct versus selling through
intermediaries.

The Importance of Intellectual Property

The Importance of Intellectual Property

Determining What Intellectual Property to Protect

Common Mistakes Firms Make in Regard to Protecting Their Intellectual Property

The Four Key Forms of Intellectual Property

Patents

Increasing Interest in Patents

Proper Understanding for What a Patent Means

Growth in Patent Applications in the United States

Three Basic Requirements for Obtaining a Patent

The Process of Obtaining a Patent

Patent Infringement
 Trademarks

Illustration of the Multifaceted Nature of Trademark Protection

Illustration of the Multifaceted Nature of Trademark Protection

What is Protected Under Trademark Law

Exclusions From Trademark Protection

The Process of Obtaining a Trademark

Copyrights

What is Protected By a Copyright

Exclusions From Copyright Protection

Obtaining a Copyright

Copyright Infringement

Trade Secrets

What Qualifies For Trade Secret Protection?

What Qualifies For Trade Secret Protection?

Conducting an Intellectual Property Audit

Chapter Objectives

1. Define the term “intellectual property” and describe its importance.

2. Discuss the four major forms of intellectual property: patents, trademarks, copyrights, and
trade secrets.

3. Specify the rules of thumb for determining whether a particular piece of intellectual
property is worth the time and expense of protecting.

4. Describe the six-step process for obtaining a patent.

5. Identify the four types of trademarks.

6. Identify the types of material that are eligible for copyright protection.

7. Discuss the legal environment that facilitates trade secret protection.

 8. Identify the most common types of trade secret disputes.

9. Describe some of the physical measures that firms take to protect their trade secrets.

10. Explain the two primary reasons for conducting an intellectual property audit.

Preparing for and Evaluating the Challenges of Growth

Three Things a Business Can Do to Prepare For Growth

Reasons for Growth

Managing Growth

Stages of Growth

Introduction

Early Growth

Continuous Growth

Maturity

Decline

Challenges of Growth

Managerial Capacity Problem

Managerial Capacity

A Firm’s Administrative Framework

Additional Challenges

Basic Model of Firm Growth

Impact of the Managerial Capacity Problem

Day-to-Day Challenges of Growing a Firm

Chapter Objectives

1. Explain the term sustained growth.

2. Describe how firms can properly prepare for growth.

3. Discuss the six most common reasons firms pursue growth.

4. Explain the importance of knowing the stages of growth.

5. Describe the most important factors for firms to focus on during each stage of growth.

6. Describe the managerial capacity problem and how it inhibits firm growth.

7. Discuss the challenges for firms growth imposed by adverse selection and moral hazard.

8. Discuss the day-to-day challenges of growing a firm.

9. Explain why “cash flow management” is a challenge for growing a firm.

10. Explain how “quality control” can become a challenge for growing a firm.