Index – The Rainmaker

Index

Acceptance of failure, 18

Accounting, key personnel attributes, 140141

Accounts payable, 124

Accounts receivable, 123

Address, choosing, 45

All-encompassing, 7

Amortized vs. interest, 117

Angel funds, 4

Angel investors, 113

A/R turnover ratio, 127

Assets

vs. liabilities, 123124

ratio analysis, 146147

sale leasebacks, 114

Assumptions, 117

Atmosphere of dread, 18

 

Balance sheet, 123124

Blame, shifting, 19

Blaming instead of acting, 1819

Blanket loans, 118

Break-even point, 69

Budget, creating, 55

Business

basic principles

business theories, 3637

market analysis and research, 4041

market opportunity, 3839

planning to exploit niche market, 39

pre-start-up to-do list, 3738

stages of business life cycles, 4143

substitutes for idea, 40

choosing products and services, 60

supply–demand model, 6061

evaluating ideas, 5758, 59

expanding, 106107

handling serious issues, 107

identity, 49

life cycles, stages of, 4143

opportunities and pitfalls, 5859

reasons for failure, 58

theories, 3637

 

Capital raising presentation

funding stages

seed capital, 131

start-up capital, 131

two rounds of financing, 131

working capital loans, 131132

funding steps, 129

presentation

general guidelines, 132133

management illustrations, 133134

proposal evaluation, 129130

evaluation, 130

filtering, 130

screening, 130

selection, 130131

Capitalized company, 3

Cash, 123

Cash flow

problems

corporate mistakes, identifying, 2124

issues causing, 2223

looking at additional mistakes, 2324

projections, 125126

Collateral pledges, 118

Commercial papers, 113114

Company name, choosing, 45

Competition

analysis of, 6667

selecting strategy, 6768

complementary products, 5354

creating budget, 55

developing plan, 54

establishing a mission, 54

making living document, 55

SWOT analysis, 54

Competitive advantage, ability to sustain, 8182

Complacency, 3

Complementary products, 5354

Compliance, 49

Conservative request, 117

Consultants, 7475

Continuity, 75

Contradictory methods

creative approach, 3233

formal analysis, 3132

Controllable expenses, 121

Convertible debt, 115

Core values, 19

Corporate

image, 142

mistakes, identifying

cash flow, 2124

fundamental historic truisms, 2427

social responsibility, 49

strategy, 5152

structure, 31

Cost–benefit analysis, 9495

Costs

of sales, 120

start-ups, 88

Covenants, 118

Creative approach, 3233

Creativity, defining, 3233

Credibility, 18

Credit customers, treating, 76

Creditors’ days, 147

Current assets, 123

turnover, 147

Current liabilities, 124

Current ratio, 126, 136

Customers, 48

credit customers, treating, 76

 

Debt

coverage ratio, 127

equity, 112113, 147

funding, 112113

ratios, 147

structure, 104

to worth ratio, 126

Debtors’ days ratio, 146

Deception, 18

Decision trees, 94

Decision-making, 8

problem-solving, 9293

steps, 9192

strategic tools

cost–benefit, 9495

decision trees, 94

force field, 93

paired comparison, 9394

Pareto analysis, 93

plus, minus, and interesting, 94

tools vs. strategy, 91

Delegation of authority, 106

Direct competition, 66

Directives, traits and, 1720

Directors’ details, 4748

Downside planning, 117

Due diligence, 31

basic checklist, 141

contracts and agreements, 144

corporate image, 142

financial statements, 143

general, 142

marketing, 143

personnel, 143144

 

Economies of scale, 103104

Efficiency, 103

Egotistic behavior, 18

Employment, 75

Enterprises, forms of, 47

Entrepreneurs, 18

billionaire, personality traits of, 1720

type of, 1415

understanding, 15

Entrepreneurial groupings, 16

Entrepreneurship, defined, 3536

Environmental factors, 81

Equipment leasing, 114

Equity, 112

debt vs., 112113

Established companies, critical success factors for, 8889

Experts, using, 24

 

Failure, acceptance of, 18

Feasibilities

analysis of competition, 6667

selecting competition strategy, 6768

financial viability, 69

market research, 6971

market viability, 6869

organizational structure viability, 65

process of, 63

technical viability, 6465

Finance, key personnel attributes, 140141

Finances and business, 109110

amount requested, 116118

deal negotiation, 116

financial projections, 110111

funding available, type of

angel investors, 113

asset sale leasebacks, 114

commercial papers, 113114

convertible debt, 115

debt vs. equity, 112113

equipment leasing, 114

government or state bonds, 115

government small business loans and funds, 113

letters of credit, 114

limited partnerships, 115

lines of credit, 115

private placements, 115

purchase order advances, 114

receivable factoring, 114

stock market listing, 115

strategic partnerships, 113

venture capital, 113

funds to start a business, 111112

total cash requirement, 110

Financial assessment, 31

Financial forecasts

income statement

controllable expenses, 121

cost of sales, 120

fixed expenses, 121122

gross profit, 121

gross profit margin, 121

total net sales, 120

income statement worksheet

balance sheet, 123124

cash-flow projections, 125126

revenue projection, 122123

key indicators and ratios, 126127

projection information, 119120

Financial problems

causes, 102103

debt structure, 104

economies of scale, 103104

efficiency, 103

identification, 101

liquidity, 102

profitability, 102

solvency, 102

Financial statements, 143

Financial viability, 69

Financing, two rounds of, 131

Fixed assets, 124

turnover, 147

Fixed costs, 53

Fixed expenses, 121122

Force Field, 93

Forecasts, 69, 93. See also Financial forecasts

Formal analysis, 3132

Funding. See also Capital raising presentation

stages

seed capital, 131

start-up capital, 131

two rounds of financing, 131

working capital loans, 131132

steps, 129

 

General key personnel attributes

accounting and finance, 140141

human resources, 141

management and key staff, 139140

marketing and sales, 140

Goals, 5152

setting, 52, 77

wishful vs. realistic, 24

Government or state bonds, 115

Government small business loans and funds, 113

Gross profit, 121, 122123

margin, 121, 126

 

Hesitation, 3

Human resources (HR), 141

 

Income statement

controllable expenses, 121

cost of sales, 120

fixed expenses, 121122

gross profit, 121

gross profit margin, 121

total net sales, 120

worksheet

balance sheet, 123124

cash-flow projections, 125126

revenue projection, 122123

Indirect competition, 66

Insurance, 46

Interest payable, 124

Interest rate, 117

Internal matters, troubleshooting, 9799

International Financial Reporting Standards (IFRS), 31

International Monetary Fund (IMF), 70

Investments, 123

 

Jungle Tactics’ research, 98

 

Key management, 139140

Key managers, motivation, 107

Key personnel, 48

Key staff, 139140

Knowledge and survival, 916

 

Legal factors, 81

Legal to-do list

address, choosing, 45

company name, choosing, 45

directors, shareholders, and other details, 4749

forms of enterprises, 47

licenses, insurance, and taxes, 46

location and pricing, 46

Letters of credit, 114

Liabilities, assets vs., 123124

Licenses, 46

Life cycles, business, 4143

Limited partnerships, 115

Lines of credit, 115

Liquidity, 102

ratio analysis, 146

Location, 46

Long-term investments, 123

Long-term liabilities, 124

 

Macroaudit, 38

Management, 74

controls, 118

strengths and capabilities of, 81

visuals, guidelines for, 133134

Market analysis and research, 4041

Market opportunity, checking, 3839

Market potential, 69

Market research, 6971

Market viability, 6869

Marketing, 143

key personnel attributes, 140

Medium-sized enterprises (SMEs), 67

Mission, 5152

establishing, 54

 

Net profit margin, 126

Net worth, 124

Niche market

planning to exploit, 39

strategies, 6768

Notes payable, 124

 

Organizational structure viability, 65

Ostentatiousness, 23

Overtrading

danger signs of, 136

defined, 135136

solution to, 136137

Owners’ equity, 124

 

Paired comparison, 9394

Pareto analysis, 93

Payable days, 136

Payroll accrual, 124

Peer analysis, 68

Penalties, 117

Personal guarantees, 118

Personality traits of billionaire entrepreneurs, 1720

Personality, 74

PESTEL analysis, 24, 31, 38, 8081, 99100

Pilot operation, 106

Plan, developing, 54

Plus, minus, and interesting (PMI), 94

Political factors, 8081

barriers, 82

competitive advantage, ability to sustain, 8182

differentiation, 82

prominence of company, 82

strengths and capabilities of management, 81

Porter’s Five Forces, 24, 31, 38, 67, 80, 8182, 99100

Pre-expansion rules, 105

pilot operation, 106

Prepaid expenses, 123

Pre-start-up to-do list, 3738

Pricing, 46, 67

Primary data, 41

Priorities, developing

competition

complementary products, 5354

creating budget, 55

developing plan, 54

establishing a mission, 54

making living document, 55

SWOT analysis, 54

making a profit, 5253

setting goals, 52

vision, mission, and goals, 5152

Private company, 47

Private placements, 115

Problem, 6364. See also Financial problems

-solving, 9293

Products and services, choosing, 6061

Professionals, 7475

Profit and loss. See Income statement

Profit making, 5253

Profitability, 102

ratios, 147

Public company, 47

Purchase order advances, 114

 

Quick ratio, 126, 136

 

Rainmaker, 1, 12, 14, 32

pertinent issues questions, 2930

Ratio analysis

assets, 146147

debt ratios, 147

equations, 145146

liquidity, 146

profitability ratios, 147

Receivable factoring, 114

Reputation enhancement, 49

Research and feasibility, 31

Respect, 19

Responsibility, not taking, 24

Return on equity, 147

Return on total assets, 147

Revenue, 120

projection, 122123

Risk-to-reward analysis, 93

 

Sales, key personnel attributes, 140

Secondary data, 4041

Section 21 companies, 47

Seed capital, 131

Self-explanatory, 106

Selling a stake, 118

Serious issues, handling, 107

Shareholders’ details, 4849

Shares, 123

Short-term investments, 123

Shotgun approach, 23

Social factors, 81

Social media, 76

basic steps, 7677

Social responsibility, 49

Solvency, 102

Staff, employing, 75

Stakeholders, 48

Start-ups

capital, 131

costs, 88

critical success factors for, 87

vs. established companies, 8788

strategy rules, 8990

Stock, 123

market listing, 115

repurchase, 118

Strategic partnerships, 113

Strategy

industry type, 99

internal matters, troubleshooting, 9799

rules, 8990

tools. See also specific tools

application, 8485

comment on, 99100

preferred types, 7984

workshops, 3132

Suppliers, 4849

treating, 7576

Supply–demand model, 6061

Survival, knowledge and, 916

SWOT analysis, 31, 38, 54, 80, 8384, 99100

 

Taxes, 46

payable, 124

Team building, 73

consultants and professionals, 7475

management, 7374

Technical viability, 6465

Technical visuals, 133134

Technology factors, 81

Termination contracts, 75

Timeframe, 117

Tools. See Strategy, tools

Total asset turnover, 147

Total liabilities, 124

Total net sales, 120

Tough questions, 19

Truism, 21

fundamental historic, 2427

Truth, 18

Two-pronged approach, 4

 

United Nations (UN), 70

 

Value add, 49

Value-added tax (VAT) legislation, 46

Value tone, setting, 23

Variable costs, 53

Vendors. See Suppliers

Venture capital, 113

Venture capitalists, 4

Vision, 5152

 

Working capital loans, 131132

World Bank, 70