M06 Basic Characteristics and Establishment of the
Description: M06 Basic Characteristics and Establishment of the Company, Start-up Trainer Presentation Project Technology Transfer Together TEchTransfer Number of the project: 2020-1-CZ01-KA203-078313 1 Content Introduction to Business How to Set Up
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slide1. M06 Basic Characteristics and Establishment of the Company, Start-up Trainer Presentation Project “Technology Transfer Together” / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313 1<br>
slide2. Content Introduction to Business
How to Set Up a Business
Financial Management
Financial Basics for Business
Financial Analysis
New Approaches to Enterprise Financing 2 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide3. Introduction to Business Project “Technology Transfer Together” / TEchTransfer Number of the project: 2020-1-CZ01-KA203-078313 3<br>
slide4. Business Business is any commercial activity that earns money when goods or services are provided to customers.
Goods are tangible items manufactured by businesses.
Services are intangible offerings of businesses that can't be held, touched, or stored.
Consumers consume goods and services to satisfy their needs. 4 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide5. Economic System and Business 5 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313 Source: Lawrence, 2018<br>
slide6. Forms of Business Ownership sole proprietorship, a suitable form for new business,
partnership, an association of two or more individuals who agree to operate a business together for profit,
corporation, a legal entity subject to the laws of the state in which it is formed,
franchising, a simple way for a new entrepreneur to obtain know-how. 6 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide7. Advantages and Disadvantages of Business Ownership Forms Task for participants:
Create small groups and try to write three advantages and three disadvantages for each form of business ownership.
Then each group presents its solution and discuss it. 7 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide8. Start-up definition Start-up is that it is an organisation built to search for a repeatable and scalable business model.
Start-up produces innovative products or services with a growth perspective.
Typical in the digital economy, medical technologies, education.
Start-ups have very low successability because of:
lack of finance,
team management problems,
lack of enough business knowledge,
technology lack. 8 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide9. Lifecycle of start-ups 9 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313 Source: Salamzadeh and Kesim, 2015<br>
slide10. How to Set Up a Business Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313 10<br>
slide11. Think about a product or service decision about product:
to provide products and services established on the market with high demand,
to provide new products and services with the precondition for rapid market creation,
to provide products and services established on the market with innovative potential. 11 Project “Technology Transfer Together” / TEchTransfer Number of the project: 2020-1-CZ01-KA203-078313<br>
slide12. Legislative aspects business forms regulated by the relevant law,
requirements for choosing a particular business form,
tax system regulated by the relevant law,
the complexity of the tax system,
other legislation affecting the administrative and business environment in each country. 12 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide13. Legal forms of business Natural person:
self-employed person,
trade-based business,
businesses based on a special law.
Legal entity:
limited Liability Company,
joint-stock company,
simple stock company,
public company,
limited partnership,
cooperative,
civic association. 13 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide14. Process of Starting Business 14 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide15. Legal Obligations and Registrations Legal conditions of an entrepreneur:
reaching 18 years of age,
legal capacity,
correctness.
Registration process:
founding and registering the sole proprietor to get the identification number, the trade license,
health insurance registration,
social insurance registration,
registration on the Tax Office to obtain the tax identification number. 15 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide16. Financial Management Project “Technology Transfer Together” / TEchTransfer Number of the project: 2020-1-CZ01-KA203-078313 16<br>
slide17. Financial Management deals with the financial aspects of the enterprise,
the main goal of the company is to maximize the market value of the company, which respects the constraints arising from the interests of other business participants,
the market value is a real value (fair value) for which the company can be sold or exchanged,
partial business goals are:
rentability,
solvency and liquidity,
stability. 17 Project “Technology Transfer Together” / TEchTransfer Number of the project: 2020-1-CZ01-KA203-078313<br>
slide18. Structure of the financial management 18 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide19. Economic mindset for an entrepreneur Task for participants:
Create small groups and try to write three effects of the business on the economy, society, etc.
Then each group presents its solution and discuss it. 19 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide20. Economic mindset for an entrepreneur Economic effects of business:
boosting economic growth,
increase in competition,
positive effect on employment,
increase in productivity,
encourage structural changes. 20 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide21. Basic financial terms Capital - an amount invested by the owner,
Assets - all resources used in the business to generate future income,
Liability - the amount a company owes e.g., loans, mortgages, bonds
Revenues - sales plus any other income received from sources such as interest, dividends, and rents,
Costs - monetary values of consumption of a company's production factors associated with its business activities,
Expenses - the reduction in cash, and they arise at the time of payment. 21 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide22. Financial statements 22 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313 Source: Lawrence, 2018 balance sheet lists all the assets of a business and all its financial resources at a given point in time,
income statement provides an overview of revenues, expenses, corporate income tax and net income (or net loss).<br>
slide23. Cost calculation 23 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide24. Cash flow statement 24 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313 Cash flow is the amount of cash that comes in and goes out of a company,
e.g., everyday purchases, payment of a salary, automatic transfers, loan repayments or the receipt of bond coupons,
these flows are presented in the cash flow statement.<br>
slide25. Corporate Income Tax is a direct tax levied on the profits of a company,
governments have been responding with bilateral or multilateral policies to allocate the taxation of these profits between themselves,
calculating corporate income tax is often complex,
the base for calculating corporate income tax is profit,
countable items are expenses that must be counted to the profit because they are not tax-deductible expenses,
deductible items reduce the tax base. 25 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide26. Basics of financial analysis financial analysis is an analysis of economic activity, where we can consider money and time,
classification according to data availability:
external financial analysis uses published data,
internal financial analysis is based on internal, not published data,
classification according to time orientation:
ex-post analysis,
ex-ante analysis,
users of the financial analysis are:
internal users,
external users. 26 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide27. Short-term solvency 27 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide28. Short-term solvency 28 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide29. Activity 29 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide30. Financial leverage 30 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide31. Profitability 31 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide32. Company valuation Market price,
the simplest way to set company's value,
usable for companies with shares traded on the stock market,
Reflect all relevant facts about the company in the efficient stock market.
Price-earning ratio (P/E),
ratio of the market price for a share to its current annual earnings per share. 32 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide33. New Approaches to Enterprise Financing Project “Technology Transfer Together” / TEchTransfer Number of the project: 2020-1-CZ01-KA203-078313 33<br>
slide34. Traditional debt finance the most common source of external finance for many small and medium enterprises (SMEs),
an unconditional claim on the borrower, who must pay a specified amount of interest to the creditor at fixed intervals, regardless of the financial conditions of the company or the return on the investment,
classification:
transaction lending,
financial statement lending,
small business credit scoring,
relationship lending,
assets-based finance 34 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide35. Venture capital belongs to private equity financing,
provides capital to the private company whose shares are not freely tradable in any public stock market,
investors participate fully in the entrepreneurial risk of the business,
investor accepts more risk and expects a higher return,
investor's objective is to make a profit by “exiting” once the firm increased its share value,
targeted at new and early-stage companies 35 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide36. Crowdfunding enables to obtain external finance from a large audience, rather than a small group of specialised investors,
everyone invests a small amount of the funding requested,
is not only about financing, but it can also be helpful in:
obtaining feedback to improve the product or service,
the process of future commercialisation.
Types of crowdfunding:
donations,
reward or sponsorship,
pre-selling or pre-ordering,
lending,
equity. 36 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide37. Conclusion business establishment is a complex process,
require an entrepreneur's knowledge of different areas,
it is useful to use all possible support mechanisms,
financial management is significant to ensure financial stability,
new approaches to enterprise financing suitable for start-ups. 37 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
Number of the project: 2020-1-CZ01-KA203-078313 1<br>
slide2. Content Introduction to Business
How to Set Up a Business
Financial Management
Financial Basics for Business
Financial Analysis
New Approaches to Enterprise Financing 2 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide3. Introduction to Business Project “Technology Transfer Together” / TEchTransfer Number of the project: 2020-1-CZ01-KA203-078313 3<br>
slide4. Business Business is any commercial activity that earns money when goods or services are provided to customers.
Goods are tangible items manufactured by businesses.
Services are intangible offerings of businesses that can't be held, touched, or stored.
Consumers consume goods and services to satisfy their needs. 4 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide5. Economic System and Business 5 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313 Source: Lawrence, 2018<br>
slide6. Forms of Business Ownership sole proprietorship, a suitable form for new business,
partnership, an association of two or more individuals who agree to operate a business together for profit,
corporation, a legal entity subject to the laws of the state in which it is formed,
franchising, a simple way for a new entrepreneur to obtain know-how. 6 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide7. Advantages and Disadvantages of Business Ownership Forms Task for participants:
Create small groups and try to write three advantages and three disadvantages for each form of business ownership.
Then each group presents its solution and discuss it. 7 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide8. Start-up definition Start-up is that it is an organisation built to search for a repeatable and scalable business model.
Start-up produces innovative products or services with a growth perspective.
Typical in the digital economy, medical technologies, education.
Start-ups have very low successability because of:
lack of finance,
team management problems,
lack of enough business knowledge,
technology lack. 8 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide9. Lifecycle of start-ups 9 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313 Source: Salamzadeh and Kesim, 2015<br>
slide10. How to Set Up a Business Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313 10<br>
slide11. Think about a product or service decision about product:
to provide products and services established on the market with high demand,
to provide new products and services with the precondition for rapid market creation,
to provide products and services established on the market with innovative potential. 11 Project “Technology Transfer Together” / TEchTransfer Number of the project: 2020-1-CZ01-KA203-078313<br>
slide12. Legislative aspects business forms regulated by the relevant law,
requirements for choosing a particular business form,
tax system regulated by the relevant law,
the complexity of the tax system,
other legislation affecting the administrative and business environment in each country. 12 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide13. Legal forms of business Natural person:
self-employed person,
trade-based business,
businesses based on a special law.
Legal entity:
limited Liability Company,
joint-stock company,
simple stock company,
public company,
limited partnership,
cooperative,
civic association. 13 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide14. Process of Starting Business 14 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide15. Legal Obligations and Registrations Legal conditions of an entrepreneur:
reaching 18 years of age,
legal capacity,
correctness.
Registration process:
founding and registering the sole proprietor to get the identification number, the trade license,
health insurance registration,
social insurance registration,
registration on the Tax Office to obtain the tax identification number. 15 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide16. Financial Management Project “Technology Transfer Together” / TEchTransfer Number of the project: 2020-1-CZ01-KA203-078313 16<br>
slide17. Financial Management deals with the financial aspects of the enterprise,
the main goal of the company is to maximize the market value of the company, which respects the constraints arising from the interests of other business participants,
the market value is a real value (fair value) for which the company can be sold or exchanged,
partial business goals are:
rentability,
solvency and liquidity,
stability. 17 Project “Technology Transfer Together” / TEchTransfer Number of the project: 2020-1-CZ01-KA203-078313<br>
slide18. Structure of the financial management 18 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide19. Economic mindset for an entrepreneur Task for participants:
Create small groups and try to write three effects of the business on the economy, society, etc.
Then each group presents its solution and discuss it. 19 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide20. Economic mindset for an entrepreneur Economic effects of business:
boosting economic growth,
increase in competition,
positive effect on employment,
increase in productivity,
encourage structural changes. 20 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide21. Basic financial terms Capital - an amount invested by the owner,
Assets - all resources used in the business to generate future income,
Liability - the amount a company owes e.g., loans, mortgages, bonds
Revenues - sales plus any other income received from sources such as interest, dividends, and rents,
Costs - monetary values of consumption of a company's production factors associated with its business activities,
Expenses - the reduction in cash, and they arise at the time of payment. 21 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide22. Financial statements 22 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313 Source: Lawrence, 2018 balance sheet lists all the assets of a business and all its financial resources at a given point in time,
income statement provides an overview of revenues, expenses, corporate income tax and net income (or net loss).<br>
slide23. Cost calculation 23 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide24. Cash flow statement 24 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313 Cash flow is the amount of cash that comes in and goes out of a company,
e.g., everyday purchases, payment of a salary, automatic transfers, loan repayments or the receipt of bond coupons,
these flows are presented in the cash flow statement.<br>
slide25. Corporate Income Tax is a direct tax levied on the profits of a company,
governments have been responding with bilateral or multilateral policies to allocate the taxation of these profits between themselves,
calculating corporate income tax is often complex,
the base for calculating corporate income tax is profit,
countable items are expenses that must be counted to the profit because they are not tax-deductible expenses,
deductible items reduce the tax base. 25 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide26. Basics of financial analysis financial analysis is an analysis of economic activity, where we can consider money and time,
classification according to data availability:
external financial analysis uses published data,
internal financial analysis is based on internal, not published data,
classification according to time orientation:
ex-post analysis,
ex-ante analysis,
users of the financial analysis are:
internal users,
external users. 26 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide27. Short-term solvency 27 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide28. Short-term solvency 28 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide29. Activity 29 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide30. Financial leverage 30 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide31. Profitability 31 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide32. Company valuation Market price,
the simplest way to set company's value,
usable for companies with shares traded on the stock market,
Reflect all relevant facts about the company in the efficient stock market.
Price-earning ratio (P/E),
ratio of the market price for a share to its current annual earnings per share. 32 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide33. New Approaches to Enterprise Financing Project “Technology Transfer Together” / TEchTransfer Number of the project: 2020-1-CZ01-KA203-078313 33<br>
slide34. Traditional debt finance the most common source of external finance for many small and medium enterprises (SMEs),
an unconditional claim on the borrower, who must pay a specified amount of interest to the creditor at fixed intervals, regardless of the financial conditions of the company or the return on the investment,
classification:
transaction lending,
financial statement lending,
small business credit scoring,
relationship lending,
assets-based finance 34 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide35. Venture capital belongs to private equity financing,
provides capital to the private company whose shares are not freely tradable in any public stock market,
investors participate fully in the entrepreneurial risk of the business,
investor accepts more risk and expects a higher return,
investor's objective is to make a profit by “exiting” once the firm increased its share value,
targeted at new and early-stage companies 35 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide36. Crowdfunding enables to obtain external finance from a large audience, rather than a small group of specialised investors,
everyone invests a small amount of the funding requested,
is not only about financing, but it can also be helpful in:
obtaining feedback to improve the product or service,
the process of future commercialisation.
Types of crowdfunding:
donations,
reward or sponsorship,
pre-selling or pre-ordering,
lending,
equity. 36 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>
slide37. Conclusion business establishment is a complex process,
require an entrepreneur's knowledge of different areas,
it is useful to use all possible support mechanisms,
financial management is significant to ensure financial stability,
new approaches to enterprise financing suitable for start-ups. 37 Project Technology Transfer Together / TEchTransfer
Number of the project: 2020-1-CZ01-KA203-078313<br>