Steven Rogers - Entrepreneurial Finance: Finance and Business Strategies for the Serious Entrepreneur

ENTREPRENEURIAL
FINANCE

Finance and Business Strategies for the Serious Entrepreneur

Second Edition

STEVEN ROGERS

Gordon and Llura Gund Family Professor of Entrepreneurship
Director, Larry and Carol Levy Institute for Entrepreneurial Practice
J.L. Kellogg School of Management, Northwestern University

WITH ROZA MAKONNEN

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Chapter 1
The Entrepreneurial Spectrum

Chapter 2
The Entrepreneur

Chapter 3
The Business Plan

Chapter 4
Financial Statements

Chapter 5
Financial Statement Analysis

Chapter 6
Cash Flow Management

Chapter 7
Valuation

Chapter 8
Raising Capital

Chapter 9
Debt Financing

Chapter 10
Equity Financing

Chapter 11
Financing for Minorities and Women

Chapter 12
Taking a Job with an Entrepreneurial Firm

Chapter 13
Intrapraneurship: Corporate Entrepreneurship

It is morning at Opryland in Nashville, Tennessee, a place where young crooners from Charlie Pride and Johnny Cash to Garth Brooks and the Dixie Chicks have realized their dreams. Not far away is the Grand Ole Oprycountry musics equivalent of the Broadway stageand a full day of work is about to begin. But this morning, the visitors have business, not music, on their minds. This is a conference for future entrepreneurs from around the country. Their schedules are packed with seminars on financing, marketing, and operations. Here is a sample: Business Start-Up Essentials, How to Find Money-Making Ideas, and Designing Products.

Of course, none of this would be particularly noteworthy except when you consider that these conventioneers are aged seven to tenand they are not the youngest group here. There is another set of entrepreneur seminars for kids aged four to six. Its called the Kidpreneurs Konference, sponsored by Black Enterprise magazine and Wendys, and this sixth annual event is a sellout. Nearby, the kids parents, all entrepreneurs or future entrepreneurs themselves, are packed into their own seminars. If there ever was a doubt that this is the glory age of the entrepreneur, a few days with these titans of tomorrow should put that notion to bed.

I write this book, this story of opportunities, because I have been blessed with so many of my own. Its said that a good entrepreneur always sees sun in the clouds and a glass half full. My wife, Michele, and my daughters, Akilah and Ariel, laugh at me when I tell them that I have gone through life always believing that when I walk through a door, the light will shine on me, no matter who else is in the room. Like every good entrepreneur, I believe in myself, but I also have enough humility to know that one does not go from the welfare rolls on Chicagos South Side to owning three successful companies, sitting on the boards of several Fortune 500 companies [S. C. Johnson & Son (formerly S. C. Johnson Wax), SuperValu, AMCORE Financial, and Harris Associates, a $60 billion mutual fund], and teaching at the finest business school in America without a healthy supply of luckand a handful of caring people.

The first entrepreneur I ever met was a woman named Ollie Mae Rogersthe oldest daughter in a family of 10 kids, and the only one among them who never graduated from high school, let alone college. Fiercely independent, she left home at the age of 17 and got married. The marriage, I believe, was simply an excuse to leave home. Leaving home meant that she got her independence, and if she was nothing else, Ollie Mae, my mother, was a fireball of independence. When my older brother, my two sisters, and I buried her a few years ago, the eulogy fell to me. I described my mother as a Renaissance woman filled with paradoxes. She was a tough and gutsy woman whose extensive vocabulary flowed eloquently although she barely finished the tenth grade.