001 PRIORITY Flashcards Preview

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Flashcards in 001 PRIORITY Deck (12):
1

RECAP

4 growth strats over 2 dims + their assessments

market dev strats       diversification strats

penetration strats       product dev strats -> use first 


Dims:
products (existing to new)

markets (existing to new)

 

2

RECAP

internal vs external growth strats

 

internal = organic

external: from alliances to M&A (but about 5 choices)

3

RECAP

  • business plan def=
  • financial plan def=

  • = implemented business strategy
  • = translation of business plan into numbers

4

RECAP

Chain of command in CH companies: 4 levels

  • shareholders' assembly
  • board of directors > monitor & appraise CEO & mgmt
  • CEO
  • (upper mgmt)

5

RECAP

customers can kill you: how, why?

they don't pay / pay late, and you have had to pay already what you sourced

6

RECAP

growth strats: accumulated S curves: principle

try to start new one before the previous flattens out

7

RECAP

most common failure reason for new ventures

premature scaling
= try to grow faster than you have money for

=> balance is needed, even under pressure from investors

8

RECAP

  • sole propriety -->
  • LLC -->
  • joint stock corporation (Inc., AG...) -->

  • unlimited liability
  • limited liability (to value of venture assets)
  • limited liability (to equity) but with extra flexibility

9

RECAP study dilution & valuation

loans do not dilute you, even if they come from a VC

10

RECAP

cashflow statement:

  • maxime
  • analogy
  • 2 components

  • "cash is king"
  • cash is like oxygen
  • income statement + asset statement

11

RECAP

debt VS equity 

+ what?

debt does not dilute ownership

+ there is also mezzanine level, aka callable debt

12

RECAP

new shares issuance exercise: 

2 points to remember

+ 1 suggestion

  • new shares are created out of nothing
  • Co valuation depends on the last transaction

+ accept all money that does not dilute you, especially if cheap!