ENT 526 Lecture Notes - Lecture 2: Creative Destruction, Scalability, Cash Flow

• School: Ryerson University
• Department: Entrepreneurship and Strategy
• Course: ENT 526
• Professor: Sean Wise

Document Summary

I am noticing the changes in the market. Take an inventory of the resources in one"s network. Combine these factors with the execution of the business plan to make an idea an opportunity. Investors prefer to see a track record of driving growth and profits. An a" team with a b" idea is almost always better than the opposite. Capital, technology, equipment, and most importantly people. Low overhead, high productivity, and controlling, but not owning resources. Find ways to get things done faster, cheaper or better! A start-up is an organization formed to search for a repeatable and scalable business model. o o o o o. Requires repayment, and therefore careful cash flow planning. Investor takes most risk, which explains the costs and expected returns. No repayment, but requires careful capital planning and investment. Understand the difference between profits and cash flow: Profitable companies can have negative cash flows and risk running out of money.