Category: Entrepreneurial Finance and Accounting

9.1 Overview of Entrepreneurial Finance and Accounting Strategies Entrepreneurial financing is concerned with understanding the funding requirements for a new business and what sources of funds are available. Each source comes with different expectations and requirements. Equity financing provides the entrepreneur with maximum flexibility: Dividends are not required and can be made when cash flow is…

Learning Objectives By the end of this section, you will be able to: You have learned how an accounting system classifies transactions in terms of assets, liabilities, and equity; what those transactions mean in terms of the accounting equation; and what that information says about an entity’s overall financial health. Now we’ll examine how to…

Learning Objectives By the end of this section, you will be able to: Although financing and accounting complement and rely on each other, they are distinct. As we have seen, financing is the process of raising money. Accounting is the system of recording and classifying financial transactions related to a business, and summarizing and communicating those transactions…

Learning Objectives By the end of this section, you will be able to: It’s important to recognize that not all startups are Silicon Valley tech companies. These companies create high-profile products, such as applications and websites, which can take years to become profitable or even generate revenue. Much more common are the small businesses founded…

Learning Objectives By the end of this section, you will be able to: The case of iBackPack demonstrates that entrepreneurial success is not guaranteed simply because a company can secure funds. Funds are the necessary capital to get a business, or idea, off the ground. But funding cannot make up for a lack of experience, poor management,…

Figure 9.1 An advertisement showcasing the features of the iBackPack. Chapter Outline 9.1 Overview of Entrepreneurial Finance and Accounting Strategies 9.2 Special Funding Strategies 9.3 Accounting Basics for Entrepreneurs 9.4 Developing Startup Financial Statements and Projections In 2015, Doug Monahan, the CEO and founder of iBackPack of Texas, Inc., introduced a revolutionary technology package encased in a typical backpack. The iBackPack boasted the capacity…