Preface of Textbook
About the Textbook
About the Authors
Book Website at McGraw-Hill
DVD Contents
Stanford 1e Book Website
McGraw-Hill 1e Book Website
Book Contents
Table of Contents
Venture Opportunity, Concept and Strategy
Venture Formation and Planning
Functional Planning of the Venture
Financing and Building the Venture
  Business Plans (App. A)
  Case Studies (App. B)
Online Sources (App. C)
Sample Syllabus
Course Overview
Calendar of Sessions
Entrepreneurial Perspective
Idea or Opportunity
Gathering Resources
Managing Ventures
Entrepreneurship and You
Additional Resources
Schools Using This Textbook
Authors Blog

Part IV: Financing and Building the Venture

The venture has a clear revenue model and a workable path to profitability. Furthermore, there is a plan of how the wealth created will be harvested by the owners. A comprehensive financial plan will be designed to demonstrate the potential for growth and profitability that is based on accurate and reliable assumptions. With the financial plan in hand, sources of investment capital will be explored and tested. Then the terms and valuation of the deal with the investors will commence. The presentation of the total business plan will require a compelling story about the venture. Furthermore, skillful negotiations with all owners and partners will be required. When funded and launched, the venture team must continuously and ethically implement the business plan and adapt to changing conditions.

Chapter 16: The Profit and Harvest Plan

A new firm creates a sales model describing how it will generate revenues from its customers. Then it determines how it will generate profits from its revenues. The revenue and profit engines show how the firm will create powerful value for its customers and how customers will enable the new firm to profit.

Chapter 17: The Financial Plan

Entrepreneurs build a financial plan to determine the economic potential for their venture. This plan provides an estimate of the potential of the venture.

Chapter 18: Sources of Capital

Entrepreneurs can estimate the capital required for their new business by reviewing the financial projections they prepare using the methods detailed in Chapter 17. In examining the projections and the cash flow statement, it becomes clear what capital will be needed and when.

Chapter 19: Presenting the Plan and Negotiating the Deal

The creators of a new enterprise need to tell their story about the future of their business. A good story will motivate investors, employees, and partners. A well-told narrative plan, one that demonstrates a novel solution to an important problem, can be inspirational and motivational.
Chapter 20: Leading a Technology Venture to Success  
Creating a business plan for a new enterprise is important, but implementing the plan successfully is essential. Execution of a plan is a discipline for connecting strategy with reality by aligning goals and the firm’s people to achieve the desired results.
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