 Copyright
Notice to Readers  Letter to Subscribers
Introduction
The Authors
Editorial: Advisory Board Contributing Authors Acknowledgements Users' Guide
Part A Breaking Through the Financing Barriers
Part B Exploring Your Financing Options
 Part C Preparing a Winning Financing Proposal
Chapter 14 Market Research 14.1 Why Market Research? 14.2 Steps in Marketing Research 14.2.1 Define What You Want to Know 14.2.2 Establish Objectives for the Market Research 14.2.3 Research Methods 14.2.3.1 Define What You Want to Know 14.2.3.2 Determine the Population That Will Be Studied 14.2.3.3 Sampling Methods 14.2.3.4 Survey Methods 14.2.3.5 Collecting the Data 14.2.3.6 Analyzing and Interpreting the Data 14.2.3.7 Preparing the Marketing Research Report 14.2.3.8 Options for Market Research 14.2.3.9 Test Markets 14.2.3.10 Observation 14.2.3.11 Points to Remember 14.3 Summary of Market Research Procedures 14.4 Sources of Secondary Information 14.4.1 Internal 14.4.2 External 14.4.2.1 Canada Business Network (Formerly Canada Business Service Centres): One-Stop Shopping for Market and Other Information 14.5 Internet Searches 14.5.1 Finding Telephone Numbers, People, Email Addresses and Businesses 14.5.2 Finding Information on the Internet 14.5.2.1 Internet Glossary 14.5.2.2 Search Engines: General 14.5.2.3 Boolean Logic 14.5.2.4 Using Boolean Logic 14.5.2.5 Directories, Virtual Libraries and Specific Engines 14.5.2.6 Software Searches 14.5.2.7 Newsgroups and Mailing Lists 14.5.2.8 Metasearches 14.5.2.9 Conclusion 14.5.3 Other Sources for Information on the Web 14.5.3.1 Business Services 14.5.3.2 D&B Dun's Directories 14.5.3.3 Other Directories and Services 14.5.3.4 Track the News Under the Topics You Specify 14.5.3.5 Online Newspapers 14.5.3.6 Web Page List Chapter 15 Preparing Financial Forecasts 15.1 Introduction 15.1.1 The Differences Between a Forecast and a Projection 15.1.2 Preparation of Future-Oriented Financial Information 15.1.3 Computer-Based Forecasts 15.2 Public Accountants' Involvement with Future-Oriented Financial Information 15.2.1 Sample Authorization Letter 15.2.2 Sample Engagement Letter: Compilation Engagement 15.2.3 Personal Guarantee 15.2.4 Sample Comments for a Future-Oriented Financial Information Compilation Engagement 15.3 Reporting on Examination of a Financial Forecast or Projection Included in a Prospectus or Other Public Offering Document 15.3.1 Understanding the Entity and its Environment 15.3.2 Reporting 15.3.3 Specimen Auditor's Report on Financial Forecast 15.3.4 Auditor's Report on Financial Projection 15.3.5 Communications with Securities Regulatory Authorities 15.3.6 Management's Plan for Development of a Forecast 15.3.7 Example of an Engagement Letter 15.3.8 Example of a General Letter of Representation 15.4 Sample Forecast with Assumptions 15.4.1 Financial Forecasts 15.4.2 Detailed Outline of Data Supporting Forecast 15.5 Guide for the Preparation of Future-Oriented Financial Information 15.5.1 Company Profile 15.5.2 Forecast Objectives 15.5.3 Cash Receipts 15.5.4 Other Receipts 15.5.5 Disbursements 15.5.6 Long-Term Loans 15.5.7 Tax Instalments 15.5.8 Data Collection Sheet: Other Receipts and Disbursements 15.5.9 Fixed Assets 15.5.10 Data Collection Sheet for Fixed Asset Additions and Disposals 15.5.11 Forecasting Sales 15.5.12 Sales Worksheet 15.5.13 Gross Sales / Net Sales 15.5.14 Cost of Sales 15.5.15 Sales and Cost of Sales by Product Line 15.5.16 Gross Profit 15.5.17 Inventory / Purchases / Cost of Sales 15.5.18 Expenses 15.5.19 Data Collection Sheet for Selling Expenses 15.5.20 Data Collection Sheet for Administration and Finance Expenses 15.5.21 Data Collection Sheet for Manufacturing Overhead Expenses 15.5.22 Data Collection Sheet for Occupancy Expenses 15.5.23 Forecast Checklist Chapter 16 Drafting the Business Plan 16.1 Introduction: The Formal Business Plan 16.2 Basic Objectives of a Business Plan 16.3 Purpose of the Plan 16.4 Why a Business Plan? 16.5 Structure of the Business Plan 16.6 Organizing the Business Plan 16.6.1 Introduction 16.6.2 Table of Contents 16.6.3 Physical Condition 16.6.4 Presentation Style 16.6.5 Supplementary Information 16.7 How to Prepare a Business Plan 16.7.1 The Executive Summary 16.7.2 Business Description 16.7.2.1 The Business 16.7.2.2 The Industry 16.7.3 Market Analysis 16.7.4 Product or Service 16.7.5 Marketing Strategy 16.7.5.1 Marketing Approach 16.7.5.2 Sales and Distribution 16.7.5.3 Service and Warranty Policies 16.7.5.4 Advertising and Promotion 16.7.6 Operations: Manufacturing or Service 16.7.6.1 Location 16.7.6.2 Plant and Equipment 16.7.6.3 The Manufacturing Process 16.7.6.4 Labour 16.7.7 Management and Organization 16.7.7.1 Organization 16.7.7.2 Key Management 16.7.7.3 Compensation and Ownership 16.7.7.4 Board Members 16.7.7.5 Professional Advisors and Consultants 16.7.7.6 Important Features 16.7.8 Timing Schedule 16.7.9 Financial Information 16.7.10 Funds Required 16.8 Testing the Business Plan 16.8.1 Assessment 16.8.2 External Factors 16.8.3 Financial Data 16.8.4 Contingency Plans 16.9 Information Sources 16.9.1 Resource Centres 16.9.2 Business Associates 16.9.3 Professional Associates 16.9.4 Publications and Databases 16.10 Summary 16.11 Typical Material for Comprehensive Business Plan 16.12 Website for Business Plans 16.13 Sample Business Plans 16.13.1 HighTech Manufacturing Inc. 16.13.2 Truck Accessory Company Chapter 17 Financial Analysis 17.1 Why Financial Analysis? 17.2 Vertical Analysis 17.3 Horizontal Analysis 17.4 Ratio Analysis 17.4.1 Comparing Ratios in the Same Set of Financial Statements 17.4.2 Comparing Ratios to Previous Years' Ratios to Observe Trends and Changes 17.4.3 Comparing Ratios with a Standard (Industry Ratios) 17.5 Commonly Used Ratios 17.5.1 Profitability Ratios 17.5.1.1 Return on Total Assets 17.5.1.2 Profit Margin on Sales 17.5.1.3 Return on Investment 17.5.1.4 Gross Margin Ratio 17.5.2 Liquidity and/or Activity Ratios 17.5.2.1 Net Working Capital 17.5.2.2 Current Ratio 17.5.2.3 Quick Ratio 17.5.2.4 Inventory Turnover 17.5.2.5 Accounts Receivable Turnover 17.5.2.6 Fixed Asset Turnover 17.5.2.7 Total Assets Turnover 17.5.3 Financial Stability or Leverage Ratios 17.5.3.1 Debt to Net Worth 17.5.3.2 Total Debt to Total Assets 17.5.3.3 Interest Coverage Ratio 17.5.3.4 Debt Servicing Ability 17.5.3.5 Fixed Charges Coverage 17.5.3.6 Accounts Payable Age 17.5.4 Bankruptcy Prediction 17.5.5 Growth Ratios 17.6 Debt Coverage in Financing 17.7 Analysis for Forecasting 17.7.1 The Components of a Time Series 17.7.1.1 Trend Component 17.7.1.2 Cyclical Component 17.7.1.3 Seasonal Component 17.7.1.4 Irregular Component 17.7.2 Smoothing Methods 17.7.2.1 Moving Averages 17.7.2.2 Weighted Moving Averages 17.7.2.3 Exponential Smoothing 17.7.3 Linear Trend Projections (Without Seasonality) 17.7.4 Linear Trend Projections (with Seasonality) 17.7.4.1 The Multiplicative Model 17.7.4.2 Seasonal Indexes 17.7.4.3 Trend Projections Using the Deseasonalized Time Series 17.8 Sources of Industry Data 17.8.1 General 17.8.2 D&B Industry Norms and Key Business Ratios 17.8.3 RMA: Risk Management Association Annual Statement Studies 17.9 Summary in Relation to Financing Chapter 18 Making The Presentation 18.1 General Principles 18.2 Reflect on the Five Cs of Credit 18.3 Plan the Presentation 18.3.1 Five Key Questions 18.3.2 Ten Key Pointers in Making an Approach for Financing 18.4 Assistance with Financing 18.5 The Accountant and Financing 18.6 Negotiating for Money Chapter 19 Expedite Disbursement of Funds 19.1 Considerations to Expedite Disbursement 19.2 Checklists Part D Successfully Dealing With Issues
Part E Restructuring and Insolvency
Part F Special Circumstances
Part G Unique Industries
Part H Overview of International Financing
Part I Legal Matters
Part J Tools for Dealing with Finance
Appendix I Historical Evolution of Finance
Appendix II Economic Forecast: North American Outlook Appendix III Glossary Appendix IV Acronyms Appendix V Case Studies
Appendix VI Credit Rating Systems and Agencies
Appendix VII Standard Industrial Classification (NAICS)
Appendix VIII Consumer Price Index
Appendix IX ISO 9000
Appendix X Leading Legal Cases
Appendix XI Sharwood Report Bibliography
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