Definisi dan Istilah dalam Business Plan
Define Business Plan
A blueprint of your business mission, goals, projections and how these
will be attained. A written instrument to help the owner to operate the
business. A road map to tell others how you expect to reach projected
goals. You may require a business plan to get a loan or attract investors.
Define Capital
Wealth, net worth in money and/or property. Any form of wealth
employed or capable of being employed in the production of more
wealth. A subset of Assets. Thus business capital.
Define Capital Structure
The post investment financial structure must fit the particular capital
requirements of the company that will provide sufficient long-term
capital growth.
Define Capital Venture (venture capital)
Funds made available for startup firms and small businesses with
exceptional growth potential.
Define Cash Flow- After Debt Service
The sum remaining after subtracting debt service (principal and interest)
from net operating income.
Define Cash Flow- Net Operating
Net operating cash is the amount of money remaining after all direct
expenses are deducted, such as maintenance, property taxes, utilities,
management, etc. but not including debt service, depreciation, income
taxes and capital improvements.
Define Commercial Lines of Credit
Working capital lines of credit are provided on a revolving basis and are
annually renewable. These lines of credit are extended on a formula
basis with advances made against selected inventory.
Define Commercial loan
A bank loan to a company to meet business operating expenses or to
finance the purchase of inventory.
Define Corporate Tax
The tax owned by the company according to the tax regulations and its
net profit before tax.
Define Corporate Tax Rate
A way to measure the amount of charge or levy placed on the profit of a
firm. Different rates are used for different levels of profits.
Define Currency
The metal or paper medium of exchange that is presently used.
Define Debt
Debt consists of long or short-term loans that may be secured,
unsecured, or partially secured, fixed or variable rate, etc. There are
many variations of debt, and a whole list of terms and conditions that
may be applicable.
Define Dividend
Distribution of earnings to shareholders, the amount is decided by the
company's board of directors and is usually paid quarterly. Dividends
must be declared as income in the year they are received.
Define Dollar Cost Averaging
A method of purchasing assets by investing a fixed amount of dollars at
set intervals (such as $100 per month). This method automatically buys
more of the asset when the prices are down.
Define Early Stage Financing (debt and/or equity)
Provided to companies that have expended their initial capital and
require funds to initiate full-scale manufacturing and sales. May be debt
or equity.
Define Earnings
Corporate profit remaining after paying taxes and bondholder interest.
Define Earnings Projection
Quantitative estimate of future earnings based on economic or financial
performance
Define Employee Stock Ownership Plan Loans
Financing to assist in the transfer of ownership to the employees.
Define Equipment Financing
Capital to be used for acquisition of equipment, operation or
manufacturing.
Define Equity
Equity is not a loan, but an investment made by an individual, group, or
an organization.
Define Equity Creation
The completed value of a project should ordinarily exceed its total cost,
since risk and other uncertainties are either clear, or eliminated.
Define Executive Summary
It provides a concise overview of the entire plan along with a history of
your company.
Define Expansion Capital
Capital used for (a) the expansion of an existing business, or (b)
enlargement of an existing structure or project.
Define Exit Strategy
A business plan should include a time frame and a mechanism for
realization of shareholder value.
Define Factoring of Accounts Receivable - Consumer Receivables
Consumer Receivable factoring is the sale of accounts receivables
(where services were delivered or goods were sold to consumers) for
cash at a discount, without credit insurance.
Define Factoring of Accounts Receivable - Full Recourse
Full-Recourse factoring is the sale of accounts receivables for cash at a
discount, without credit insurance.
Define Factoring of Accounts Receivable - Maturity
Maturity factoring allows companies to establish predictable cash flow
levels at a relatively low cost by offering what amounts to a slow
payment insurance policy.
Define Factoring of Accounts Receivable - Non Recourse
Non-Recourse factoring is the sale of accounts receivables for cash at a
discount, where the factor insures the credit risk associated with your
customer's ability to pay, but does not insure the performance risk in
your ability to deliver a satisfactory service or product.
Define Financial Lease
A long-term lease that extends over most of the useful life of the asset.
Define Financial Leverage
The use of debt financing to complement equity financing.
Define Financial Structure Ratio
Invested capital (or net assets) divided by owners' equity. A measure of
financial leverage based on balance sheet data.
Define Financial Summary
Condensed statement of a companies financial activities
Define Financial Analysis
The techniques used to determine money needs in a business.
Techniques include balance sheet, financial ratio analysis, calculation of
return on investment and break-even analysis to determine ultimate
success.
Define Financing
The manner in which a proposed purchaser intends to make up the
difference between cash on hand and the purchase price. A method of
financing in which a company issues shares of its stock and receives
money in return.
Define Firms Cost of Capital
The return expected by investors for the capital they supply to fund all
the assets acquired and managed by the firm.
Define First Stage Funding (debt and/or equity)
Provided to companies that have expended their initial capital and
require funds to initiate full-scale manufacturing and sales. May be debt
or equity.
Define Fixed Assets
Tangible, relatively long-lived resources. The business has acquired
these assets ordinarily in order to use them in the production of other
goods and services.
Define Fixed Asset Turnover or Turns
Sales divided by fixed assets. A measure of the efficiency of fixed assets
management.
Define Franchising
Companies transferring the right to conduct business under its
trademark.
Define Goodwill
The difference between the (higher) price at which a firm has been
acquired and either its reported net book value or its estimated fair
value.
Define Gross Profit
The difference between the firm's net sales and its cost of goods sold.
Define Hard Money Loans
Mortgage loans that are made to borrowers who have significantly
adverse credit. These loans are usually made by private investors or
funding companies. Hard money lenders are commercial real estate
lending companies offering a specialized type of real-estate backed
loan.
Define Historical Multiples
Multiples calculated using past financial data. Same as trailing multiples.
Used to value a firm.
Define Horizontal Merger
Two firms in the same sector pooling their resources.
Define Hurdle Rate
An investment's cost of capital when used in comparison with the
investment's internal rate of return. Same as minimum required rate of
return.
Define Inflation
A sustained rise in the prices of goods and/or services. Two common
measures of the Inflation Rate are the Consumer Price Index and the
Producer Price Index.
Define Income Statement
Financial statement reporting information about the firm's activities that
result in changes in the value of owner' equity during a period of time,
obtained by deducting from revenues the corresponding expenses
incurred during that period of time.
Define Incremental Cash Flow
The difference between the firm's expected cash flow if the investment
is made and its expected cash flows if the investments not undertaken.
Define Initial Public Offering (IPO)
When a firm sells equity to the public for the first time.
Define Intangible Assets
Assets such as goodwill, patents, trademarks, and copyrights.
Define Interest - Rate Risk
Risk arising from unexpected changes in the level of interest rates that
affect the firm's future cost of debt financing.
Define Internal Rate of Return (IRR)
Discount rate at which the present value of the future cash flows of an
investment equal the cost of the investment.
Define International Lines of Credit
Through letters of credit you can place the strength of the lender behind
your company providing the international trading partners with
additional confidence.
Define Inventories
Raw materials, work in process, and finished goods not yet sold,
reported in the balance sheet as current assets.
Define Inventory Turn or Turnover
Cost of goods sold divided by ending inventories.
Define Invested Capital
The sum of cash and marketable securities, working capital requirement,
and net assets. Equal to capital employed.
Define Investment
The use of capital to create more money. Usually includes the idea that
safety of principal is important.
Define L.L.C.
Limited Liability Corporation
Define Land Loan
Financing the making, installing, or constructing of the improvements
necessary to convert raw land into construction-ready building sites.