Training

Business Plans and Entrepreneurs:  Separating the Weak from the Strong

ED506 – Business Plans and Entrepreneurs:  Separating the Weak from the Strong.  Economic development practitioners are often called upon to provide assistance for start-up businesses.  While the rewards of successful new companies are great – job creation, stronger local economics, increased market opportunities – considerable risks exist.  More than 75 percent of start-up businesses fail.  This three-day course explores the skills used to evaluate a start-up business’ chances for success.  Participants learn how to evaluate a business plan – the primary tool used to make a credit decision for lending to or investing in a new company.  For start-up businesses with strong potential, students determine the best type of financing and structure appropriate financing packages.  Specific topics include:

Evaluating Start-up Businesses

• Risks and opportunities
• Management characteristics
• Organizational structure

Analyzing Business Plans

• Purpose and components of a business plan
• Analyzing the market
• Testing the entrepreneur
• Analyzing financial capacity

Business Credit Analysis and Beak Even Point Analysis

• Credit analysis process
• Break even point analysis

Projections

• Understanding assumptions
• Sources of information
• Projecting financial statements

Cash Flow Analysis

• Managing cash flow
• The operating cycle’s effect on cash flow

Deal Structuring and Restructuring

• Financing sources for start-up businesses
• Equity and venture capital
• Evaluating financing options

Prerequisites:  ED101 and ED201