Sustainable Growth as a Starting Point
The level of growth that can be sustained by
the ventures operating cash flow
Assumption is that assets, debt, equity, net
income all grow in fixed proportion to sales
The value of the sustainable growth model is
Typical industry working capital terms:
Industry credit terms to customer are 20 days.
Average inventory days on hand is 30 days.
Suppliers grant wholesalers credit for an average of 15 days.
Estimate - industry terms would produce $3 million
What is Entrepreneurial Finance?
All financial aspects of entrepreneurship and
investing in entrepreneurial ventures
Decision making related to undertaking and investing in
Evaluating strategic choices from the perspective of value