Seminar 3: Financing Capital Needs of the Entrepreneurial Enterprise

Seminar Location and Time

University of Maryland University College
Dorsey Station

November 11, 2008
8–11 a.m.

Description

This three-hour program will address three key topics for the owners and leaders of entrepreneurial enterprises. The first topic will be to fully understand the importance of managing cash flow. The second topic addresses the importance of understanding the options for financing your business and the impact of your decisions—including costs, taxes, and valuation—on your business. The last topic discusses the value of understanding the story behind the financial statements. 

Goals

Upon completion of this seminar, you will have an understanding of the dynamics of financing a business and apply these concepts to your entity. Specifically, you will be able to:

• Understand the key metrics to managing cash in your business
• Use ideas, tools and techniques for financing the growth of your business
• Understand the various types of financing available in the marketplace
• Understand the costs of the each type of financing
• Where to locate the sources of funding
• Identify key metrics in your financial statements
• Develop analytical tools to obtain key information from your financial reporting
• Understand the impact on taxes under various financing structures
  

Outline and Structure

A. Cash is King

1. If I Have Money in My Checkbook  Everything is Fine

2. Cash Flow Statements

3. Cash Flow Forecasts

4. Impact to Cash from Growth

 

B. Capital Structure—Debt and Equity

1. Types of Debt

• Senior Debt
• Subordinated Debt
• Cash Flow Lending

2. Hybrid Financing

• Mezzanine Financing
• Warrants / Options

3. Types of Capital

• Friends and Family
• Angel Funding
• Venture Capital
• Publicly-Traded

4. What is Cost of Capital?

5. How Much Does the Capital Cost ?

• Debt
• Equity

6. Where Do I Find the Money?

• Debt
• Equity

7. How Does Capital Structure Impact Valuation?

• Working Capital Requirements
• Industry Benchmarks
• Enterprise Value vs. Equity Value
• Risk Tolerance
  

8. Tax Costs of Financing

• Debt
• Warrants / Options       
• Equity

 

C. Financial Statements—What Do I Need to Know Everyday?

1. Income Statement

• Revenue Growth
• Gross Margin
• Operating Expenses
• Rolling Twelve Months
  

2. Balance Sheet

• Leverage
• Working Capital Requirements
• Net Worth
  

3. Cash Flow Statements

• Cash from Operations
• Bank Lending Limitations
• Managing Receivables

Contact Information

For this Seminar Topic

Rick Kohr
Evergreen Capital LLC
8808 Centre Park Drive
Suite 204
Columbia, Maryland 21045
410-997-6000
rkohr@ecapitalllc.com
www.ecapitalllc.com


For the Entrepreneur Development Center

University of Maryland University College
Dorsey Station
443-459-3500
edc@umuc.edu