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| Preface | |
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| List of Cases | |
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| Starting the Venture | |
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| The Entrepreneurial Process | |
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| Introduction | |
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| An Entrepreneurial Profile | |
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| An Entrepreneurial Perspective | |
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| How This Book is Different from Other Textbooks | |
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| Why Become an Entrepreneur? | |
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| Entrepreneurship: A Lifetime Choice? | |
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| Profile: Paul Silvis | |
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| The Growth of Entrepreneurial Companies | |
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| The Growth Period | |
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| The Entrepreneurial Mindset | |
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| Profile: Andy Stenzler | |
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| Summary | |
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| Study Questions | |
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| Exercises | |
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| Interactive Learning on the Web | |
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| Additional Resources | |
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| The Art of Innovation-Developing Ideas and Business Opportunities | |
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| Introduction | |
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| Why Innovation Is Important | |
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| Definition and Types of Innovation | |
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| Frameworks for Learning Innovation Skills | |
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| Finding and Assessing Ideas | |
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| Converting an Idea into an Opportunity | |
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| Opportunity: Five Phases to Success | |
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| Summary | |
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| Study Questions | |
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| Exercises | |
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| Interactive Learning on the Web | |
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| Case Study: Starion Instruments | |
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| Additional Resources | |
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| Analyzing the Market, Customers, and Competition | |
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| Introduction | |
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| Formulating a Successful Marketing Plan | |
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| Preparing the Marketing Analysis and Plan | |
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| Defining the Market Segmentation | |
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| Conducting a Competitive Analysis | |
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| Preparing the Pricing and Sales Strategy | |
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| Penetrating the Market and Setting Up Sales Channels | |
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| Summary | |
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| Study Questions | |
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| Exercises | |
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| Interactive Learning on the Web | |
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| Case Study: Smart Card LLC Marketing Plan | |
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| Marketing Research Techniques | |
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| Additional Resources | |
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| Setting Up the Company Objectives | |
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| Introduction | |
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| Profile: Roy Wetterstrom | |
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| Identifying What Form of Ownership Is Best | |
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| Forms of Doing Business | |
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| Sole Proprietorship | |
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| C-Corporation | |
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| S-Corporation | |
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| Partnership | |
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| Limited Liability Company (LLC) | |
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| Business Startup Check-up list | |
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| Setting Up Employer-Employee Agreements | |
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| Setting Up Stock Option Agreements | |
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| Summary | |
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| Study Questions | |
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| Exercises | |
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| Interactive Learning on the Web | |
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| Case Study: D-Marc Technologies, Inc. | |
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| Additional Resources | |
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| Sources of Financing | |
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| Financing the Closely Held Company | |
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| Introduction | |
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| Profile: James Dyson | |
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| Securing Early-Stage Funding | |
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| Profile: Liz Elting, Phil Shawe | |
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| Bootstrapping | |
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| Profile: Woo Song | |
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| Using Bank Loans as a Source of Cash | |
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| Profile: Lisa Abrams | |
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| How to Use Commercial Banks | |
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| Preparing a Loan Proposal | |
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| How to Apply for a Loan | |
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| Establishing the Terms of Debt | |
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| Building a Relationship with a Banker | |
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| Using Government Sources of Funding | |
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| Small Business Innovation Research (SBIR) Program | |
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| Summary | |
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| Study Questions | |
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| Exercises | |
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| Interactive Learning on the Web | |
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| Case Study: hIDe | |
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| Startup Entrepreneurs and Business Incubators | |
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| Additional Resources | |
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| Equity Financing for High Growth | |
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| Introduction | |
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| Profile: Kevin O'Connor | |
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| Equity Investment Fundamentals | |
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| Angel Investors | |
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| Understanding the Venture Capital Process | |
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| Guide to Selecting a Venture Capitalist (VC) | |
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| Private Placements | |
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| Learning How to Value a Business | |
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| Profile: Ron Heffernan | |
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| Earnings Valuation | |
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| Asset Valuation | |
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| Discounted Cash Flow Valuation | |
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| Learn to Evaluate Investment Opportunities: Time Value of Money Approaches | |
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| Net Present Value (NPV) Method | |
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| Internal Rate of Return (IRR) | |
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| Summary | |
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| Study Questions | |
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| Exercises | |
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| Interactive Learning on the Web | |
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| Case Study: CoreTek, Inc. | |
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| Additional Resources | |
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| Due Diligence Checklist | |
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| Model Venture Capital Term Sheet-Series A Preferred Stock | |
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| Implementation | |
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| Discovering Value in Intellectual Property: The Competitive Edge | |
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| Introduction | |
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| Profile: Xerox Corporation | |
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| What Are Trademarks? | |
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| What Are Copyrights? | |
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| What Are Patents? | |
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| What Are the Qualifications for a Patent to Be Granted? | |
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| How is Intellectual Property Protected? | |
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| Documenting the Ideas | |
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| What Is Prior Art? | |
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| Using Search Options | |
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| Progress From Idea to Patent to Enterprise | |
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| What Are Trade Secrets? | |
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| Reverse Engineering | |
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| Summary | |
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| Internet IP Source Sites | |
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| Study Questions | |
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| Mini Exercises | |
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| Interactive Learning on the Web | |
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| Case Study: Datamark Patent | |
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| Additional Resources | |
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| Business Models and the Power of Information | |
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| Introduction | |
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| Definition of Business Models | |
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| Capturing Value in the Supply Chain | |
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| Using Databases to Create Value | |
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| Locking in Customers | |
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| Licensing and Franchising | |
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| Outsourcing Resources | |
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| Developing a Culture for Innovation | |
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| Summary | |
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| Study Questions | |
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| Exercises | |
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| Interactive Learning on the Web | |
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| Case Study: Ultrafast | |
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| Additional Resources | |
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| Managing the Money | |
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| Introduction | |
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| Understanding Financial Statements | |
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| Review and Analysis of the Balance Sheet | |
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| How to Use Ratios for Financial Analysis | |
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| The Value of an Income Statement | |
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| How to Use Ratios for Profitability | |
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| The Value of the Statement of Cash Flows | |
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| Understanding Footnotes to the Financial Statements | |
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| Preparing Financial Projections | |
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| Preparing a Cash Flow Forecast | |
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| Preparing a Breakeven Analysis | |
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| Taxes | |
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| Summary | |
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| Study Questions | |
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| Exercises | |
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| Interactive Learning on the Web | |
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| Case Study: PetSmart.com | |
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| Additional Resources | |
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| Patterns of Entrepreneurship: Building and Exiting | |
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| Scaling and Harvesting the Venture | |
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| Introduction | |
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| Create an Exit Strategy | |
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| Selling an Equity Stake to a Partner | |
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| Profile: Navin Chaddha | |
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| Implementing the Plan of Action | |
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| Selling the Business | |
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| Preparing a Selling Memorandum | |
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| Searching for Buyers | |
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| Evaluating Offers | |
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| Merge with Another Business | |
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| A Management Buyout Agreement (MBO) | |
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| Consider and Employee Stock Ownership Plan | |
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| Consider a Public Offering as a Harvest Option | |
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| Profile: Alan Trefler | |
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| Determining the Benefits of Going Public | |
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| Profile: Melissa Craig | |
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| Determining the Disadvantages of Going Public | |
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| Managing the IPO Event | |
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| Completing the Registration Process | |
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| Presenting a Road Show | |
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| The Expenses of Going Public | |
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| Delivering Value and Meeting Market Expectations | |
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| Summary | |
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| Study Questions | |
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| Exercises | |
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| Interactive Learning on the Web | |
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| Additional Resources | |
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| Bringing It All Together-Writing the Winning Business Plan | |
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| Introduction | |
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| Preparing a Business Plan | |
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| Profile: Barbara K. Kavovit | |
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| Starting the Process to Write the Plan: Five Steps | |
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| Determining What Type of Business Plan Is Best | |
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| A Typical Business Plan Format and Content | |
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| Understanding Why Business Plans Fail | |
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| Summary | |
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| Study Questions | |
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| Exercises | |
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| Interactive Learning on the Web | |
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| Case Study: Surfparks LLC | |
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| The Roadmap Guide for Writing a Business Plan | |
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| Additional Resources | |
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| Communicating the Opportunity and Making a Presentation | |
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| Introduction | |
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| Locating Investors | |
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| Preparing a Teaser | |
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| The Elevator Pitch | |
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| After the Presentation | |
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| Summary | |
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| Study Questions | |
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| Exercises | |
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| Interactive Learning on the Web | |
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| Notes | |
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| Glossary of Terms | |
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| Index | |