ETHICAL BEHAVIOR, LEGAL STRUCTURES:
Agreements: (3)
non disclosure, non compete, founders
AGREEMENT: non disclosure: maintains firm's _______ _______
trade secrets
AGREEMENT: non compete: prohibits directly _______ behavior for a specific _______ of ________
competitive, period, time
AGREEMENT: Founders: details _____, _______, and ______
responsibilities, compensations, exits
ETHICAL BEHAVIOR
Establish ______ code
anticipate results of _______ actions
understand unethical behavior ______ costs
always treat people the way ______ _____ ___ ___ _______
understand the _____, _____ the situation, never ______
ethical, personal, increases, they want to be treated, rules, manage, lie
Legal Structure alternatives: (4)
LLC, corporation, sole proprietorship, partnership
Issues to Consider in Choosing a legal form of business ownership:
______ of setting up and _______ legal form of ownership
extent to which you can ______ personal assets from the liabilities of the business
_____ considerations
ease of ______ capital
___
cost, maintaining, shield, tax, raising, desirability
ELEMENTS OF A NEW VENTURE TEAM: (6)
management team, key employees, board of directors, board of advisers, lenders and investors, other professionals
NEW VENTURE FINANCING:
new firm financing typically required to:
manage _____ ____ challenges
meet _______ _____ obligations (liquidity)
underwrite ______ investment needs
survive _______ product development
cash flow, short term, capital, lengthy,
NEW VENTURE FINANCING
sources of new venture funding:
_________ _______ : friends, family, bootstrapping
______: creating an obligation
_______: exchanging ownership for cash
personal financing, debt, equity
Types of FINANCING/FUNDING:
________ _________: from government, foundation sources, for specific areas of development, does not need to be repaid
______ _______: senior (banks), subordinated debt (venture leasing), mezzanine financing)
______ ______: lim
grant funding, debt financing, private equity, public equity, organic growth
DEBT:
must be ________
principle, ____, fees, default penalties
DEBT AGREEMENT:
__________
_________
_______
repaid, interest, amount, terms, covenants
advantage of debt:
non diluting
disadvantage of debt: _______ obligation, _______ funds available to grow the business
monthly, reducing
EQUITY:
exchange ownership in company for ______
________ usually preferred or _______ _______
EQUITY AGREEMENT:
establishes a pre-money valuation of the company
determines ______, minority rights
profit/loss _____ priority
exit valuation and _________
cash, ownership, common stock, control, distribution, timing
advantage of equity: investor shares the _____
risk
disadvantage of equity: _______ of ownership
dilution
MARKETING THE NEW VENTURE:
Market Segmentation:
_______ within selected industry
sized by: _______ segment which will permit achievement of sales goals to ______ resource
niche, smallest, maximize
MARKETING THE NEW VENTURE:
Market Positioning:
customers image, _______ of offering
must motivate interest/purchase
answers question: why should our target segment ______ our product/service
perception, purchase
MARKETING THE NEW VENTURE:
Marketing Mix:
(4) p's
product, price, promotion, place
PROTECTING YOUR OPPORTUNITY:
Intellectual property:
__________: excludes others from using process, business method, design for 14-20 years
_________: words, symbols, identifiers which distinguishes offering from others; 10 year renewable protection while
patent, trademark, copyright, trade secrets, competitive advantage, independent
_______ is the critical life cycle phase
growth
GROWING YOUR BUSINESS:
Business Opportunity Growth is Required To:
capture __________ of scale
achieve _______ leadership
maintain influence with ________
accommodate growth of _____ _________
attract ______ employees
execute _______ business model
economies, market, suppliers, key customers, talented, scalable
GROWING YOUR OWN BUSINESS
Challenges to Achieving Sustainable Growth:
____ ______ management
price ________
______ control
_______ constraints
cash flow, stability, quality, capital
STRATEGIES FOR GROWTH:
Internal Growth:
new _____ development
line _______
________/ channel expansion
CHALLENGES:
______ growth
no _________ of core competencies
product, extensions, geographic, slower, expansion
STRATEGIES FOR GROWTH:
External Growth:
_________/acquisitions
L_____
strategic alliances/ ______ ventures
F___________
CHALLENGES:
______ conflict
increased ______
mergers, licensing, joint, franchising, management, complexities
FRANCHISING:
Exchange of _____ and operational rights/assistance for royalty fees (5%)
TYPES:
_____ ________ franchise: rights use name, buy product for resale (auto dealership, soda bottlers)
________ _______ franchise: purchase of business _____/process
trademarks, product trademark, business format, individual, area, master, growth
SELLING A FRANCHISE:
advantages:
______, low cost _______ expansion
secondary _____ source
system benefits of economies of scale, business improvement, _____ power
disadvantages:
_____ sharing
loss of _____ with franchises
fast, market, income, buying, profit, control
BUYING A FRANCHISE:
advantages:
______ product/service
franchisors experience/ _______ expertise
support for _______ and training
Disadvantages:
_______
restrictions on ________
lack of franchisor ______
inconsistent ________ of other franchisees
proven, technical, financing, cost, creativity, commitment, quality
EXIT STRATEGIES
Business success is about accomplishing goals in the most _______, most _______ manner possible
Several Means to Realizing Business Success:
Create a business ______, protect it, _____ it
Grow the business, sell ____ (IPO) or ____ of the b
efficient, expedient, concept, sell, part, all, other business