Class Notes (808,765)
Canada (493,382)
Business (3,224)
BU121 (464)
Laura Allan (258)
Lecture 7

BU121 Lecture 7: Lecture 7 entreuprenuerial finance II

3 Pages
Unlock Document

Wilfrid Laurier University
Laura Allan

Lecture 6 th Feb.8 /17 Entrepreneurial finance II KEYS to using Contribution  What’s the issue?  What tool do you have that would help me make a decision? (WHY) o Look at the wording  What are the steps – process (WHAT) o What information do I need and how do I get it?  How do I interpret the answer/use it to make a decision? (HOW) o See if the numbers are realistic, look at breakeven and how to reduce Startup Financial Metrics (pg. 176 text)  For all startups: o Sales forecast, headcount, expenses (fixed + variable), breakeven cash flow  Unique metrics o Gross margin, inventory turns, occupancy, qualified leads (internet business) o Don’t want things to go obsolete o If you’re not looking at the qualified leads, only looking at views won’t help  Creation and capture of value o Customer acquisition costs (CAC) vs. lifetime customer value (LCV) o How much is the customer worth to me? And how much it to keep them? o Revenue per salesperson and time to revenue (how much am I paying them?) o Contribution margin o Monthly burn rate *importance of how you measure your business aside from the accounting side Forecasting Demand/ Sales Revenue  POTENTIAL  No formula  projections based on research and logic = educated guess so you can defend o Need to build trust for your investors to lend you the money  Market potential DOES NOT EQUAL sal
More Less

Related notes for BU121

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.