Entrepreneurial Finance

by Simon Hulme, Chris Drew

Overview

Financial literacy is one of the fundamental keys to business success, and this ground-breaking textbook teaches students the necessary financial skills required by entrepreneurs.

Presenting an abundance of case studies and examples throughout, the book uses a step-by-step approach which will develop the reader's knowledge of the three key financial statements: profit & loss, balance sheet and cash flow. It explains the various considerations for raising capital: the requirements of banks, business angels, crowdfunding platforms, and venture capitalists, along with details and pitfalls of term sheets. Finally, it suggests ways of using accounting data to create a financially intelligent business and achieve business success. The authors' impressive background as successful entrepreneurs and business angels underscores the highly practical and useful coverage offered, whilst Simon Hulme's teaching experience tailors it to fit student needs perfectly.

Entrepreneurial Finance is a refreshingly easy-to-grasp introduction, especially suitable for those who find this topic daunting. Visually appealing and engagingly written, this book, together with its range of bespoke digital resources, succeeds in breaking down complex concepts and communicating them with clarity. The ideal resource for university students taking entrepreneurship and business courses, it will also be valuable for entrepreneurs who wish to scale their business, as well as managers seeking to consolidate their understanding of entrepreneurial finance.

Product Details

ISBN-13:	9781352009811
Publisher:	Bloomsbury Academic
Publication date:	04/30/2020
Edition description:	1st ed. 2020
Pages:	343
Product dimensions:	6.69(w) x 9.61(h) x 0.75(d)

About the Author

Simon Hulme is an award-winning Associate Professor at UCL School of Management, where he has lectured in Entrepreneurial Finance since 2013. He is also Programme Director of the MSc Entrepreneurship programme. Simon is an active Business Angel investor having made around 40 investments. At the age of 24 he started his first business, Frame Express, a chain of fast picture framing shops, which was sold it to a public company in 1989. Simon then co-founded Card Connection with Chris Drew in 1992, a greeting card publisher distributing through over 100 franchisees in the UK and Ireland. The business was one of the ten largest UK greeting publishers and was sold to American Greetings Inc in 2008, and is today a key division of their UK business. Further information can be found on Simon's website www.simonhulme.co.uk. Teaching awards: Best teacher on MSc Entrepreneurship 2014/15 and 2015/16.

Chris Drew acts as a consultant to start-up and early stage businesses, specialising in the provision of financial modeling services. Prior to this, his career spanned a range of activities from corporate planner in a FTSE 100 company, to finance director of both Frame Express and Card Connection, to managing director of a pioneering financial services company, to designer and licensor of a proprietary investment management model. He is a graduate of Lancaster University, in Management Sciences, and later studied Investment Management at the London Business School.
Simon Hulme is an award-winning Associate Professor at UCL School of Management, where he has lectured in Entrepreneurial Finance since 2013. He is also Programme Director of the MSc Entrepreneurship programme. Simon is an active Business Angel investor having made around 40 investments. At the age of 24 he started his first business, Frame Express, a chain of fast picture framing shops, which was sold it to a public company in 1989. Simon then co-founded Card Connection with Chris Drew in 1992, a greeting card publisher distributing through over 100 franchisees in the UK and Ireland. The business was one of the ten largest UK greeting publishers and was sold to American Greetings Inc in 2008, and is today a key division of their UK business. Further information can be found on Simon's website www.simonhulme.co.uk. Teaching awards: Best teacher on MSc Entrepreneurship 2014/15 and 2015/16.
Chris Drew acts as a consultant to start-up and early stage businesses, specialising in the provision of financial modeling services. Prior to this, his career spanned a range of activities from corporate planner in a FTSE 100 company, to finance director of both Frame Express and Card Connection, to managing director of a pioneering financial services company, to designer and licensor of a proprietary investment management model. He is a graduate of Lancaster University, in Management Sciences, and later studied Investment Management at the London Business School.

Table of Contents

1. INTRODUCTION
1.1 Purpose of Accounts
1.2 Setting the Scene
2. PROFIT & LOSS
2.1 The Profit & Loss Statement
2.2 The Importance of Gross Profit
2.3 Product Pricing Structures
2.4 Accrual Accounting
2.5 Depreciation
2.6 Break-Even Analysis
3. THE BALANCE SHEET
3.1 The Balance Sheet Statement
3.2 A Tour of the Balance Sheet
3.3 Analysing the Balance Sheet
3.4 Balance Sheet Examples
3.5 Returbaning to the Balance Sheet Formula
4. CASH FLOW MANAGEMENT & FORECASTING
4.1 The Cash Flow Statement
4.2 The Cash Conversion Cycle
4.3 Improving Cash Flow
4.4 The Cash Flow Forecast
4.5 Building a Financial Model
5. FINANCIAL CAPITAL
5.1 Sources of Capital
5.2 Debt Funding
5.3 Understanding Share Capital
5.4 Sources of Equity Funding
5.5 The Equity Funding Process Explained
6. CAPITAL INVESTMENT APPRAISAL
6.1 Introducing Capex Appraisal
6.2 The Payback Method
6.3 Net Present Value
6.4 Internal Rate of Returban
6.5 Establishing The Discount Rate
6.6 Applications of Capital Investment Appraisal
7. RUNNING A FINANCIALLY INTELLIGENT BUSINESS
7.1 A Financially Intelligent Business
7.2 The Annual Budgeting Process
7.3 Management Accounts
7.4 Trailing 12 Month Graphs
7.5 Looking to the Future.