BU121 Study Guide - Final Guide: Unifor, Pay Attention, Value Proposition
Document Summary
Finance (31%) 2 m/c, 9 short answer marks, 14 math marks. In early stage, companies at least 2 of the 3 is subject to substantial uncertainty. If losses are forecast in the first few years, it is likely that they will occur and even greater ones: valuatio(cid:374)s a(cid:396)e d(cid:396)i(cid:448)e(cid:374) (cid:271)(cid:455) su(cid:271)je(cid:272)ti(cid:448)e fo(cid:396)(cid:272)es . Valuations are driven by subjective/qualitative factors - 3 ms: market, value proposition - some investors may understand, while others may not. Industry - some investors may prefer certain industries over others: moat. In real life, result of a mutually accepted valuation between the company and its investors, which incorporates: entrepreneur"s determination of the acceptable amount of ownership that may be given in return for the capital and/or expertise. Some motivation for investor to help you make sales as well. Growth strategies: risk/reward trade-off - start from lowest risk (low potential reward) to be safe. Sell more of your current product to current customers: market development.
