578 ENTREPRENEURSHIP
business plan, 170–171
business plans, 194–195
new venture creation, 434–435, 436, 437
software company, 533–534
financial projections in executive summaries, 164, 166
financial resources
Internet marketing, 236
limitations of, 48–49
management of, 49
strategic resources, 47–49, 51
financial services via Internet, 233
financial soundness, 46
financial statements
biotechnology firm, 524
business plans, 200–202
fast-food industry, 462, 463, 470–471
financial strategy in business plans, 171
financing, obtaining
business plan, need for, 156–158
sources of, 194–195, 261, 263
financing, requesting
executive summaries in business plans, 164, 165
new venture creation, 423
financing new ventures, 252–297
asset-based valuation, 276–277
debt-based financing, 267–268, 270–275
discounted cash flow models, 279–282
earnings-based valuation, 277–279
equity-based financing, 264–267, 268, 269–270
IPO process, 295–297
legal and tax issues, 282–291
life cycle of venture, 260–261, 262
needs, determining, 254–261, 262
new venture valuation, 276–282
organization, legal forms of, 282–285
ownership, centralized, 293–294
private placements, 285–287
social entrepreneurship, 253
sources of financing, 261, 263–275
U.S. bankruptcy laws, 287–291
working capital and cash flow, 256–260
finished goods inventory, 259
firm-commitment selling effort, 295
first-mover advantage
disadvantage, as, 126
isolating mechanism, 125–126, 127–128
first-stage financing, 260
five-stage process model of intrapreneurship, 391–395,
396
fixed, then variable pricing, 221
fixed asset requirements, 247, 248
focal industry, explained, 92
focus as creativity technique, 67
focus strategy, explained, 92
Food and Drug Administration, 79
Forbes magazine, 299
forecasts
business environment, 74–75
preparing, 251
forgiving opportunities for investors, 305–306
formal networks, 357, 359
format and presentation of business plans, 161, 177–
180
Fortune magazine
corporate reputation, 45–46
dot-com business ventures, 237
industry analysis, 91
forward integration, 95
founding and early years of business, 442448–451
four actions framework for Blue Ocean strategy, 401–
403
Four-I model of creative thought, 68
fourth-stage (mezzanine) financing, 260–261
fragmented industries
coping with, 143–144
explained, 142–143
overcoming, 143
frame test for crafting and evaluating strategy, 147–148
franchisees
considerations, 417
defined, 119, 410
guidelines for, 418–419
requirements of, 417–418
franchising
agency problem, 412
as business form, 410–411
competitive issues, 415, 417
defined, 410
fast-food industry, 462, 465, 466, 468–469, 472
fragmented industries, 144
franchise-able business, 414–415, 416
franchisee considerations, 417
franchisee guidelines, 418–419
franchisee requirements, 417–418
franchisor considerations, 413
major entry wedge, 119, 120
organizational boundaries, 412
retail stores, 503–514
theoretical foundations, 411–412
franchising agreements, 418
franchisor
considerations, 413
defined, 119, 410
free association, 67
freedom factors for intrapreneurship, 404–405
friendly investors, 302
fulfillment capability for Internet marketing, 235
functional capabilities, 36
functional strategy, described, 113
future
entrepreneurship, of, 4–7, 8
fast-food industry, 451, 462–463
future earnings, 278
gain-sharing, 374
Gainsharing News, 374
game theory, 324
gazelles, described, 14
general partnerships, 283, 285
geographic transfers, 120–121
global and international issues
entrepreneurial spirit, 15