Tip: We suggest you check the Glossary (pages 165-79) for definitions related to items in this index.
A
Accountants
Finding and selecting 47-50
Using 22, 26, 33, 47-50, 55, 85, 137-38, 140
See also QuickBooks.
Accounts payable 22, 27, 30-34, 91, 93, 130, 145
Accounts receivable 22, 25, 28, 30-34, 75, 77, 80, 91-92, 121-22, 130, 134, 145
Accredited investor 64-65
Angel investor 64-65, 73, 96-97, 135
B
Bad debt 31
Bank accounts 21-22, 25-26, 78, 126, 129
Bank charges See Finance charges, Interest on credit.
Banks and banking relationships 33, 51-53, 65
Bookkeeping 26, 33, 48, 106, 116, 137, 140
See also Accountants.
Borrowing money See Acquiring financing, Loans.
Budget 21-24, 64, 100, 115, 122, 130
Burn-out 145
Business plan 19, 56-60, 69, 85, 95, 103, 107, 121, 138, 150-62
Marketing and sales strategy 57, 158-59
Organization and management 57, 155-56
Service or product line 57, 159-60
See also Financial section of business plan.
C
Capital 32, 38, 56, 58-64, 68, 73-75, 91-92, 96-97, 121, 131-33, 135-36, 140, 160-62
Cash 25, 27-32, 36, 38, 63-64, 67, 75-77, 80, 92-93, 111, 120-22, 126, 129-30, 161
Cash capital disbursements 64
Cash flow 25, 29-34, 58, 63, 73, 75-77, 91-94, 111, 122, 161
Cash flow management 91-94
Cash flow problems, internal and external causes of 33-34
Cash on Delivery (COD) 93
CDC/504 loans 68
Chart of accounts 49
Collateral for loans 44, 63, 70-71, 78-83, 85, 94-95, 115, 134, 136, 161
Collecting payments from customers 25, 27-29, 34, 63, 92, 114, 122, 133 See also Late payments.
Communications 33, 51-53, 70-72, 76, 92-93, 106-07, 116, 118-19, 158, 162
Consumer reporting agency 36
Costs See Expenses and costs.
Credit 25-31, 35-46, 51-53, 75-78, 80-85, 91-94, 111, 115-16, 120-22, 125, 130-30, 135-36, 162
Credit cards 27, 40, 44-45, 76, 78, 82, 92-94, 98, 120-21, 130
Credit industry 35-39
Credit insurance 29 See also Factoring invoices, Insuring invoices.
Credit limits 28, 35, 40, 92, 122
Credit lines 25, 28, 31, 52, 75-77, 81, 133
Credit ratings for companies 36
Credit reference agencies 36
Cromwell, John 139
Crowd funding 135
Customers 17, 25-29, 31-36, 51-52, 57, 79, 87, 91-94, 103-04, 106-07, 112-15, 118, 122, 129-30, 132-33, 140, 147, 149, 152-55, 157-59, 163
D
Debt financing 63-64, 73, 96, 103, 136
Debt-to-income ratio (DTI), or debt ratio 40, 82
Depreciation 47-49
Direct costs 19
Disaster loans 67-68
E
Economy, effects of 34-38, 46, 68, 75, 95, 115, 140
Education and learning 17, 37, 42, 45, 51, 54-55, 76, 84, 107, 120, 123, 143, 45, 150, 154, 156
Efficiency and priorities 144-46
Employees 21, 23-24, 58, 64, 66, 113, 116-19, 122, 125-26, 129-30, 146-48, 151, 155-56
Equity 60, 63, 65, 80, 96, 102, 160
Equity financing 63-64, 70, 73-74, 80, 97, 103, 135, 160
Expenses and costs 19-20, 22-24, 30, 32-34, 37, 44, 47, 58-60, 63-64, 70-71, 85, 91-92, 94, 99, 106, 111, 113, 115, 125-26, 129, 131-34, 137-39, 141-42, 154-55, 159, 161
External causes of cash flow problems 34
F
Factoring invoices 28-29
FIFO 137-40
Finance charges 20, 129 See also Interest on credit.
Finance section in business plan 59-60, 161-62
Financial drivers 19-20, 50, 113, 145-46
Financial fears 114-16
Financial tools 22, 32, 54-55, 64, 134, 140, 145, 163
Financing, equity and debt 73-75 See also Debt financing, Equity financing.
Forecasting 22, 32, 34, 58, 85, 95, 98-99, 134, 140, 146
Forecasting growth 33, 35, 58, 85, 95, 97-99, 111, 116, 134, 140, 146, 161
Fully loaded costs See Cost of goods, Direct costs, Indirect costs, True costs.
Funding 22, 46, 59, 59-60, 64, 81-87, 103, 105, 121
Crowd 135
Family and friends’ 69-72
Request, in business plan 56, 58-60, 160-61
Second round 95-97
Subsidies 63,
See also Debt financing, Equity financing.
Global business 25, 34, 49, 57, 106-107, 138, 140
Growth 28, 57, 60, 65, 68, 74, 91, 95-96, 98-108, 111-13, 129, 134-35, 147, 152, 156, 158, 162
Growth strategies 103-05, 135-36 See also Forecasting growth.
I-J
Incubator offices 55
Indirect costs 19-20,
Initial public offerings of stock (IPOs) 65
Insuring invoices 28-29
Internal causes of cash flow problems 33-34
International business See Global business.
Inventory 27, 63, 68, 75, 80, 91, 137-40, 145
Investors 33, 46, 56, 58, 63-65, 70, 73-74, 83, 96-97, 103, 116, 121, 135, 139, 151, 156
Interest on credit 25, 27-28, 31, 35-38, 42, 45, 64, 68, 70-71, 73, 76, 79, 82, 85, 92, 94, 121, 131, 133
Interest (share of ownership) 63-65, 157
IPOs See Initial public offerings of stock.
K
Key financial drivers 20, 145-46
L
Late payments 26-28, 31, 34, 40, 84, 114, 122
Lenders 36, 39, 44-46, 51-53, 63, 68-70, 73, 75-79, 81-87, 92, 96-97, 131, 133-34, 139-40
Life of business See Stages in the life of a business.
LIFO 137-40
Limited Liability Company (LLC) 57, 135, 157
Liquidation 63-64
Lines of credit See Credit lines.
Loans 22, 25, 28, 31, 33, 41-46, 53, 64-65, 67-68, 70, 73, 75-87, 91-92, 95-96, 114-115, 121, 133-36, 161 See also Collateral for loans; Credit; Financing, equity and debt; Funding; Straight Loans.
M
Mastermind groups 55
Mergers and acquisitions (or takeovers) 52, 64, 105
Microloans 67-68
Modes of growth 105 See also Forecasting growth, Growth, Growth strategies.
Money management See Cash flow.
N
Negative cash flow 30-31
Non-profit 68
O
Opportunity cost 131-33
Organizing data and documents 30-33, 43-48, 53, 80, 84-85, 87, 100, 111, 123, 126, 144-46
Overdraft protection 25 See also Credit.
Ownership 56, 63-64, 70, 73-74, 78, 96-97, 139, 155, 157 See also Equity debt, Investors.
P
Past due invoices See Late payments.
Payables See Accounts payable.
Payment modes 27
Payment terms 25-29, 32, 85, 91, 94, 122, 131, 153
PayPal 27
Pitfalls, financial 72, 120-23
Positive cash flow 30-31, 63, 76
Principal of loans 64
Private equity 60, 73, 96-97 See also Accredited investors, Angel investors, Investors, Venture capitalists.
Profit 19-20, 22-23, 29, 34, 36, 44, 63-64, 67, 74, 92, 98-99, 112, 114-15, 117, 121, 138-40, 145, 148, 161
Profit and loss statement (P&L) 44, 143
Projections See Forecasting.
Q
QuickBooks software 26, 28, 47, 55
R
Receivables See Accounts receivable.
Return on investment (ROI) 97-98
Revolving line of credit 45, 76-77
Risk 23, 26, 31, 34-36, 38-40, 60, 63-65, 69-72, 76, 78-80, 84, 93, 96, 99, 104-05, 119, 122, 134-36
S
Sales 19-20, 22, 32-34, 57-60, 64, 91, 103, 106-07, 111-113, 140, 145, 147-48, 157-59, 161
Security for financial data 45-46
Selling your business 147-49
Sensitivity analysis 99
Sharing financial information with employees 117-19
Small Business Administration (SBA, in the U.S.) 65, 67-68
Special business development incentives 66-68 See also Grants.
Stages in the life of a business 111-13
Stagnation 111-113
Straight loan 25, 28 See also Loans.
T –U
Mistakes 124-26
Planning 47-49, 73, 82, 124-26, 138-40, 146
Record keeping 44, 46, 103, 114, 121-26
Time management 31, 55, 65, 70, 144-46
Tools 22, 54-55, 107, 126, 134, 140, 142, 145, 162
Trade shows and fairs 66, 107, 132, 141-43, 153,
Trailing twelve months’ performance (TTM) 134
True costs 19-24, 94, 125, 131-133
V
Vendors 27-28, 31, 77, 93-94, 113, 133 See also Accounts payable.
Venture capitalists 60, 65, 73
W – X – Y – Z
Welch, Jack 135