Discover how to secure the financial resources to launch and sustain a new business.
Duration: 8 weeks
Along with a potential entrepreneur’s idea for a new business comes the need to fund it. In MBA 655 Financing New Ventures, you will explore the financial aspect of developing a new product or service, from funding sources to the economic environment. Of course, the most fundamental step in becoming an entrepreneur is developing a business plan, and you will review the components of this document. Funding sources will change as a company evolves. You will look at different financing options. You will also consider the various business structures startups you can choose and how they can protect against risk and maximize return.
Evaluating and monitoring progress on many levels is vital to an entrepreneur’s success. You will examine tools that measure a venture's progress toward reaching its goals, , techniques for financial evaluation, such as cash flow, financial ratios, and the cash conversion cycle. You will consider the various lending and investing vehicles that fund new ventures and the securities laws that affect funding. You will also evaluate the impact of changing financial markets on the availability of capital, and how financial risks impact the cost of capital. Legal restrictions on venture funding and oversight by the Securities and Exchange Commission can also play a part in how a new venture finds funding.
What You will Learn in MBA 655
In order to find funding for a new venture, there must be value placed on it. You will explore how new venture value is determined, including the basic valuation concept employed in a startup’s early stages. The formula for valuing a new firm includes risk, cash flow, and timing. You will see why these forecasts can convince or dissuade venture capitalist investment. In addition to venture capitalists, you will evaluate private and government funding sectors as well other funding alternatives.
Charged with the goal of saving a fictional company from financial ruin, you will analyze its financial statements to understand why income is down and why its financial health is failing. In appraising the firm’s financial conditions, you will recommend actions to improve its efficiency, effectiveness and bottom line.
A startup firm may be able to use securities for funding, and you will examine the types of securities available. You will also explore what happens when a new venture is up and running and owners are ready to “cash out.” There are many issues to consider when harvesting the value of a company, including the range of financial methods used to sell a company. You will examine what happens when a new venture doesn’t perform as expected. As you look at issues to identify and address in a struggling company to make it profitable, you will also learn how to decide if it’s time to terminate the venture and, if so, how to liquidate a firm.
Throughout this course, weekly topics may include but are not limited to:
- Introduction to Entrepreneurship and Creating a Business Plan
- Financing and Measuring the Firm's Financial Performance
- Evaluating the Financial Performance and Planning for the Future
- The Types of Financial Capital and the Impact of Securities Laws
- Valuing Early - Stage Ventures and Venture Capital
- Venture Capital and Other Financing Alternatives
- Determining Enterprise Values and Harvesting Investment Value
- Financially Troubled Ventures
Course Learning Outcomes
Upon successful completion of MBA 655, you will be able to:
- Detail the critical components of firms’ business plans.
- Evaluate the financial performance of the start-up firm through effective and accurate measuring techniques.
- Establish short- and long-term financial planning processes.
- Identify the legal aspects of the entrepreneurial environment.
- Evaluate the venture capital needs of a start-up firm.
- Examine the turnaround and exit strategies available to the entrepreneur.
Request More Information Today
To learn more about the online Master of Business Administration curriculum from Benedictine University, including Financing New Ventures, call (866) 295-3104 to speak with a program manager or request more information.
Course content and outcomes may vary and are subject to change without notice.