Finance for Non-Financial Managers »

Lawrence W. Tuller has owned and operated twelve companies. He is a graduate of Harvard University and the Wharton School and he holds a CPA certification. He is the author of twenty-seven books directed toward entrepreneurs and small business owners, including Entrepreneurial Growth Strategies; The Small Business Valuation Book; Exporting, Importing, and Beyond; and High-Risk High-Return Investing.

If you're a manager in sales, marketing, operations, or human resources-or if you're a small business owner-you need to understand how the numbers work for your business. But not everyone has a background in finance and accounting.

Finance for Non-Financial Managers and Small Business Owners, Second Edition helps you to understand the basics of finance so that you can make informed financial decisions. From the fundamentals of cash management, understanding statements, and monitoring cash flow, to banking, planning, and obtaining capital, this book defines key terms, reviews important concepts, and offers clear explanations and examples of all you need to know. With Finance for Non-Financial Managers, you can boost and maintain the financial health of your business.

Introduction     xi
Financing Fundamentals     1
Cash Management     3
Maximizing Cash Generation     5
Minimizing Cash Expenditures     11
Using the Internet as a Finance Tool     15
Qualifying for Loans     17
E-Banks     21
Evaluating Online Lenders     25
Small-Business Financial Web Sites     28
Analyzing Financial Statements     29
Financial Statement Theory     30
Balance Sheets     30
Income Statement     32
Analytic Tools     33
Qualitative Analytic Measures     44
Forecasting Cash Flow     49
Economic and Business Assumptions     51
Sales Forecast     54
Purchased Materials Forecast     55
Direct Labor Forecast     57
Cost/Volume/Price/Asset Functional Relationships     58
Inventory Forecast     60
Operating Expense Forecast     61
Income Statement Forecast     66
Balance Sheet Forecast     67
Cash Flow Forecast     71
Locating the Right Professional Assistance     79
Retail Bank     80
Tax Accountant     81
Small Business Administration     82
State and Local Development Agencies     83
Commercial Real Estate Agents     84
Small-Business Trade Groups and Trade Associations     85
Franchisers     86
Large Public Accounting Firms     86
Management Consultants     87
Merger and Acquisition Consultants and Business Brokers     89
Money Brokers     90
Small Investment Banks     91
Contractual Guidelines     92
Financing Advisors: A Summary     92
Banks     95
Banks and Bank Terminology     97
Current State of the Banking Industry     99
A Variety of Banks to Choose From     99
Choosing the Right Bank     102
Banking Language     104
Getting Through the Bank's Door     113
Loan Criteria     114
Approaching a Bank for a Loan     122
Pros and Cons of Bank Loans     127
Relationships with Other Financial Institutions     128
Preparing to Borrow from a Bank     131
The Financing Package     132
Business Owner's Qualifications      132
Establishing Credentials     136
Personal Statement of Financial Condition     136
Financing Plan     139
Variations to Financing Plans     143
Personal Guarantees     144
Gaining the Edge with Banks     144
Planning     147
Operating Budgets     149
The Budget Curse     151
Expense Budgets     152
Fixed/Variable Budgeting     153
Case Study: Ultra Manufacturing Company     155
A Management Tool     157
Capital Expenditure Budgets     159
The Business Plan     165
The Company     167
Marketing Plan     170
Operations Plan     178
Personnel Plan     181
Financial Plan     185
Strategic Planning     189
Company Mission     190
Growth Objectives     192
Market Niches     194
Comparative Analysis     198
Economic/Business Cycle Indicators     204
Financing     207
Venture Capital     209
Investment Instruments     210
When to Use Venture Capital     212
Venture Capital Markets     212
Business Acquisitions     217
Small Business Investment Companies     222
Applying for Financing     224
Looking to the Future     226
Financing with Equity     229
Partnerships     230
Limited Partnerships     233
Strategic Alliances     237
Joint Ventures     238
Joint Venture Agreements     239
Locating Joint Venture Partners     243
Leasing     247
Leasing Terminology     248
Different Types of Leases     251
Tax Consequences     254
Making a Lease-or-Buy Decision     256
Lease Contracts     260
Negotiating a Lease Contract     263
Challenging Leasing Myths     265
Sale/Leaseback as a Financing Tool     267
Where to Locate Leasing Companies     268
Protecting Your Assets Against a Personal Guarantee     271
Develop a Strategy     272
Transferring Title to a Third Party     275
Transferring Assets Offshore     280
Transferring Assets to a Spouse     281
Personal Bankruptcy     283
Restructuring and Refinancing     287
Eliminate Short-Term Debt     288
Convert Short-Term to Long-Term Debt     289
Defer Debt Payments     293
Nonbank Sources of Capital     294
Index     301