Index

Tip: We suggest you check the Glossary (pages 165-79) for definitions related to items in this index.

A

Accountants

Finding and selecting 47-50

Using 22, 26, 33, 47-50, 55, 85, 137-38, 140

Accounting software 22, 33

See also QuickBooks.

Accounts payable 22, 27, 30-34, 91, 93, 130, 145

Accounts receivable 22, 25, 28, 30-34, 75, 77, 80, 91-92, 121-22, 130, 134, 145

Accredited investor 64-65

Angel investor 64-65, 73, 96-97, 135

B

Bad debt 31

Bank accounts 21-22, 25-26, 78, 126, 129

Bank charges See Finance charges, Interest on credit.

Bankruptcy 19, 27-29, 71

Banks and banking relationships 33, 51-53, 65

Bookkeeping 26, 33, 48, 106, 116, 137, 140

See also Accountants.

Borrowing money See Acquiring financing, Loans.

Budget 21-24, 64, 100, 115, 122, 130

Burn-out 145

Business plan 19, 56-60, 69, 85, 95, 103, 107, 121, 138, 150-62

Appendix 58, 162

Company description 57, 155

Executive summary 56, 150-52

Financials 59-60, 161-62

Funding request 58-60 160-61

Market analysis 57, 152-55

Marketing and sales strategy 57, 158-59

Organization and management 57, 155-56

Service or product line 57, 159-60

See also Financial section of business plan.

C

Capital 32, 38, 56, 58-64, 68, 73-75, 91-92, 96-97, 121, 131-33, 135-36, 140, 160-62

Cash 25, 27-32, 36, 38, 63-64, 67, 75-77, 80, 92-93, 111, 120-22, 126, 129-30, 161

Cash capital disbursements 64

Cash flow 25, 29-34, 58, 63, 73, 75-77, 91-94, 111, 122, 161

Cash flow management 91-94

Cash flow problems, internal and external causes of 33-34

Cash on Delivery (COD) 93

Cash position 92, 94

CDC/504 loans 68

Chart of accounts 49

Collateral for loans 44, 63, 70-71, 78-83, 85, 94-95, 115, 134, 136, 161

Collecting payments from customers 25, 27-29, 34, 63, 92, 114, 122, 133 See also Late payments.

Communications 33, 51-53, 70-72, 76, 92-93, 106-07, 116, 118-19, 158, 162

Consumer reporting agency 36

Cost of goods 20, 137-38

Cost of money 93, 131-33

Costs See Expenses and costs.

Credit 25-31, 35-46, 51-53, 75-78, 80-85, 91-94, 111, 115-16, 120-22, 125, 130-30, 135-36, 162

Credit bureaus 36, 40

Credit cards 27, 40, 44-45, 76, 78, 82, 92-94, 98, 120-21, 130

Credit industry 35-39

Credit insurance 29 See also Factoring invoices, Insuring invoices.

Credit limits 28, 35, 40, 92, 122

Credit lines 25, 28, 31, 52, 75-77, 81, 133

Credit ratings for companies 36

Credit reference agencies 36

Credit report 37, 39-43, 77

Credit score 36-37, 39-42

Cromwell, John 139

Crowd funding 135

Customers 17, 25-29, 31-36, 51-52, 57, 79, 87, 91-94, 103-04, 106-07, 112-15, 118, 122, 129-30, 132-33, 140, 147, 149, 152-55, 157-59, 163

D

Debt financing 63-64, 73, 96, 103, 136

Debt-to-income ratio (DTI), or debt ratio 40, 82

Depreciation 47-49

Direct costs 19

Disaster loans 67-68

E

Economy, effects of 34-38, 46, 68, 75, 95, 115, 140

Education and learning 17, 37, 42, 45, 51, 54-55, 76, 84, 107, 120, 123, 143, 45, 150, 154, 156

Efficiency and priorities 144-46

Employees 21, 23-24, 58, 64, 66, 113, 116-19, 122, 125-26, 129-30, 146-48, 151, 155-56

Equity 60, 63, 65, 80, 96, 102, 160

Equity financing 63-64, 70, 73-74, 80, 97, 103, 135, 160

Expenses and costs 19-20, 22-24, 30, 32-34, 37, 44, 47, 58-60, 63-64, 70-71, 85, 91-92, 94, 99, 106, 111, 113, 115, 125-26, 129, 131-34, 137-39, 141-42, 154-55, 159, 161

External causes of cash flow problems 34

Exit strategies 97, 115

F

Factoring invoices 28-29

FIFO 137-40

Finance charges 20, 129 See also Interest on credit.

Finance section in business plan 59-60, 161-62

Financial drivers 19-20, 50, 113, 145-46

Financial fears 114-16

Financial tools 22, 32, 54-55, 64, 134, 140, 145, 163

Financing, equity and debt 73-75 See also Debt financing, Equity financing.

Forecasting 22, 32, 34, 58, 85, 95, 98-99, 134, 140, 146

Forecasting growth 33, 35, 58, 85, 95, 97-99, 111, 116, 134, 140, 146, 161

Fully loaded costs See Cost of goods, Direct costs, Indirect costs, True costs.

Funding 22, 46, 59, 59-60, 64, 81-87, 103, 105, 121

Acquiring 63-69, 81-83

Crowd 135

Family and friends’ 69-72

Government 65, 67-68

Request, in business plan 56, 58-60, 160-61

Second round 95-97

Subsidies 63,

See also Debt financing, Equity financing.

G-H

Global business 25, 34, 49, 57, 106-107, 138, 140

Government funding 65, 67-68

Grants 65, 68

Growth 28, 57, 60, 65, 68, 74, 91, 95-96, 98-108, 111-13, 129, 134-35, 147, 152, 156, 158, 162

Growth strategies 103-05, 135-36 See also Forecasting growth.

I-J

Incubator offices 55

Indirect costs 19-20,

Initial public offerings of stock (IPOs) 65

Insuring invoices 28-29

Internal causes of cash flow problems 33-34

International business See Global business.

Inventory 27, 63, 68, 75, 80, 91, 137-40, 145

Investors 33, 46, 56, 58, 63-65, 70, 73-74, 83, 96-97, 103, 116, 121, 135, 139, 151, 156

Interest on credit 25, 27-28, 31, 35-38, 42, 45, 64, 68, 70-71, 73, 76, 79, 82, 85, 92, 94, 121, 131, 133

Interest (share of ownership) 63-65, 157

IPOs See Initial public offerings of stock.

K

Key financial drivers 20, 145-46

L

Late payments 26-28, 31, 34, 40, 84, 114, 122

Lenders 36, 39, 44-46, 51-53, 63, 68-70, 73, 75-79, 81-87, 92, 96-97, 131, 133-34, 139-40

Life of business See Stages in the life of a business.

LIFO 137-40

Limited Liability Company (LLC) 57, 135, 157

Liquidation 63-64

Liquidity 25, 129

Lines of credit See Credit lines.

Loans 22, 25, 28, 31, 33, 41-46, 53, 64-65, 67-68, 70, 73, 75-87, 91-92, 95-96, 114-115, 121, 133-36, 161 See also Collateral for loans; Credit; Financing, equity and debt; Funding; Straight Loans.

M

Mastermind groups 55

Mentors 55, 102

Mergers and acquisitions (or takeovers) 52, 64, 105

Microloans 67-68

Modes of growth 105 See also Forecasting growth, Growth, Growth strategies.

Money management See Cash flow.

N

Negative cash flow 30-31

Networking 54, 70, 153

Non-profit 68

O

Opportunity cost 131-33

Organizing data and documents 30-33, 43-48, 53, 80, 84-85, 87, 100, 111, 123, 126, 144-46

Overdraft protection 25 See also Credit.

Ownership 56, 63-64, 70, 73-74, 78, 96-97, 139, 155, 157 See also Equity debt, Investors.

P

P&L 44, 143

Past due invoices See Late payments.

Payables See Accounts payable.

Payment modes 27

Payment terms 25-29, 32, 85, 91, 94, 122, 131, 153

PayPal 27

Pitfalls, financial 72, 120-23

Positive cash flow 30-31, 63, 76

Principal of loans 64

Private equity 60, 73, 96-97 See also Accredited investors, Angel investors, Investors, Venture capitalists.

Profit 19-20, 22-23, 29, 34, 36, 44, 63-64, 67, 74, 92, 98-99, 112, 114-15, 117, 121, 138-40, 145, 148, 161

Profit and loss statement (P&L) 44, 143

Projections See Forecasting.

Q

QuickBooks software 26, 28, 47, 55

Quoting prices 26, 36-37

R

Receivables See Accounts receivable.

Return on investment (ROI) 97-98

Revolving line of credit 45, 76-77

Risk 23, 26, 31, 34-36, 38-40, 60, 63-65, 69-72, 76, 78-80, 84, 93, 96, 99, 104-05, 119, 122, 134-36

S

Sales 19-20, 22, 32-34, 57-60, 64, 91, 103, 106-07, 111-113, 140, 145, 147-48, 157-59, 161

Security for financial data 45-46

Selling your business 147-49

Sensitivity analysis 99

Sharing financial information with employees 117-19

Small Business Administration (SBA, in the U.S.) 65, 67-68

Social media 17, 54, 104

Special business development incentives 66-68 See also Grants.

Stages in the life of a business 111-13

Stagnation 111-113

Straight loan 25, 28 See also Loans.

T –U

Takeovers 52, 64, 105

Taxes 26, 31, 44, 121-26

Filing 25, 47-48, 121-26

Mistakes 124-26

Planning 47-49, 73, 82, 124-26, 138-40, 146

Record keeping 44, 46, 103, 114, 121-26

Tax accountants 47-50, 74

Time management 31, 55, 65, 70, 144-46

Tools 22, 54-55, 107, 126, 134, 140, 142, 145, 162

Trade shows and fairs 66, 107, 132, 141-43, 153,

Trailing twelve months’ performance (TTM) 134

True costs 19-24, 94, 125, 131-133

V

Vendors 27-28, 31, 77, 93-94, 113, 133 See also Accounts payable.

Venture capitalists 60, 65, 73

W – X – Y – Z

Welch, Jack 135

Worth of business 115, 147-49, 161