Entrepreneurial Finance: Strategy, Valuation, and Deal Structure
Chapter 8. Assessing Financial Needs
Learning Objectives
After reading this chapter you should be able to:
• Explain how the sustainable growth model is derived and then apply it to determine financing requirements
• Determine how the choice of financing facilitates the entrepreneur’s abilities to respond to product-market success or failure and to retain significant ownership
• Understand how to use a cash-flow breakeven analysis to assess financial needs
• Apply scenario analysis to assess financing needs
• Apply simulation techniques to assess financing needs
• Recognize when each type of analysis is appropriate for assessing cash needs