Entrepreneurship 4: Financing and Profitability from Coursera

What's inside

Syllabus

Business Models and Keeping Customers

This module was designed to introduce you to some of the key activities you can do in order to reach and sustain profitability. You'll learn the most important rule of entrepreneurship, the different kinds of business models, how to determine who your best customers are and how to develop strategies to retain them. You'll also hear from a successful entrepreneur and venture capitalist from Greylock Partners, who will talk about what indicators of success his firms looks for when deciding where to invest. By the end of this module, you'll be able to use business models to create customers who will come back for more, and know what key attributes to emphasize if you want to attract investment from venture capital.

Financing, Valuation, and Terms

In this module, you'll learn the five most common methods of financing, and explore the financing process in depth. You'll also learn strategies for valuing your own company, and how venture capital and angel investors use valuations in negotiating milestones, influence and control. You'll discover how term sheets work, and what the terms mean, and you'll also examine the other terms used when financing with angel investors, friends and family, loans, and crowdfunding. By the end of this module, you'll be able to pick the financing pathway that's best for your enterprise, use common valuation strategies to set a reasonable price for your company, and negotiate favorable terms.

Private and Public Financing, and Calculating Breakeven

This module was designed to give you a closer look at the advantages and disadvantages of both public and private financing, and to provide you with some simple but powerful tools for estimating how much capital you will need. You'll learn about the added benefits of working with venture capital firms, when and why to consider debt financing, and the latest trends in crowdfunding. You'll also learn to calculate how much money you are losing each month (the burn rate), and when you can expect to become self-sustaining (the breakeven point). By the end of this module, you'll be able to perform your own breakeven analysis so you can make a more informed choice about the best source of financing for you company.

Elements of the Pitch and Exit Strategies

In this module, you'll learn the three key elements of your pitch to funders, and the examine the most common methods of exiting the entrepreneurial phase. You'll learn the structure and best practices for an executive summary, your pitch deck, and your pro-forma financial statements, and discover why these are so important to potential investors. You'll also learn the key differences between taking your company public and having it acquired by another, larger firm, and explore which method is best for preserving innovation. By the end of this module, you'll be able to create an effective pitch, and begin developing an exit strategy for your company that's relevant, effective and profitable.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Instructs students on various financing pathways such as bootstrapping, organic growth, debt financing, venture capital, and crowdfunding

Covers important elements of a successful pitch, including executive summary, pitch deck, and financial projections

Provides an overview of key types of investors and the terms associated with equity financing

Suitable for entrepreneurs who seek a comprehensive understanding of financing options and strategies

Teaches how to determine the best financing pathway for a given enterprise

Instructors have a combined expertise in business, venture capital, and entrepreneurship

Reviews summary

Profitability and financing in entrepreneurship

Learners say this entrepreneurship course has engaging material that is relatively easy to learn. Students with some background knowledge in startups may find the course to be too easy. Still, learners largely enjoyed this course.

Learners enjoyed the material in this course.

"I like this course very much."

"This class has very interesting material."

Learners with some background knowledge in startups may find the course to be too easy.

"Background: I have worked at a startup for the past 3 years, so I was already familiar with the concepts."

Learners found this course to be relatively easy.

"My only critique is that it’s to easy at times, and I find myself wishing there was more assessments or projects."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Entrepreneurship 4: Financing and Profitability with these activities:

Watch videos on different financing options

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Watching videos on different financing options will give you a broad overview of the available options and help you identify the ones that are most relevant to your startup.

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Search for videos on YouTube or other video-sharing platforms
Watch videos from a variety of sources, including entrepreneurs, investors, and financial experts
Take notes on the key points from each video

Review key financing terms

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Reviewing key financing terms will help you understand the course materials and participate more effectively in discussions.

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Create a list of key terms from the course syllabus
Define each term using a financial dictionary or online resources
Practice using the terms in context by writing a summary of a financing article

Find a mentor who can provide guidance on your startup

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Finding a mentor who can provide guidance on your startup will help you avoid common pitfalls and increase your chances of success.

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Identify the qualities you are looking for in a mentor
Network with other entrepreneurs and investors
Ask for introductions to potential mentors
Interview potential mentors to find the best fit
Establish a regular meeting schedule with your mentor

Five other activities

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Calculate startup valuations

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Practicing startup valuations will improve your understanding of how investors value companies and help you make informed decisions about financing your own startup.

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Find a startup valuation model online or in a textbook
Gather financial data for a startup you are interested in
Calculate the startup's valuation using the model
Compare your valuation to valuations from other sources

Attend a startup pitch competition

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Attending a startup pitch competition will give you a chance to see how other entrepreneurs pitch their companies and get feedback from investors.

Browse courses on Pitching

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Find a startup pitch competition in your area
Register for the competition
Prepare a pitch for your own startup or a startup that you are interested in
Give your pitch at the competition
Get feedback from investors and other attendees

Mentor other students in the same course

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Mentoring other students in the same course will help you solidify your understanding of the course material and develop your leadership skills.

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Identify a student who would benefit from your help
Set up a regular meeting time to meet with the student
Review the course material with the student
Answer the student's questions
Provide feedback on the student's work

Contribute to an open-source project related to entrepreneurship

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Contributing to an open-source project related to entrepreneurship will give you hands-on experience with real-world projects and help you build a network of other entrepreneurs.

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Find an open-source project that you are interested in
Introduce yourself to the project community
Start contributing to the project
Collaborate with other contributors
Become a project leader

Write a white paper on a specific financing topic

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Writing a white paper on a specific financing topic will help you develop a deep understanding of the topic and improve your ability to communicate complex financial concepts.

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Choose a specific financing topic that you are interested in
Research the topic thoroughly using academic papers, articles, and industry reports
Write a draft of your white paper, including an introduction, body, and conclusion
Get feedback on your draft from a professor, mentor, or other expert
Revise and finalize your white paper

Career center

Learners who complete Entrepreneurship 4: Financing and Profitability will develop knowledge and skills that may be useful to these careers:

Entrepreneur

An Entrepreneur starts and manages their own business. This course provides a comprehensive overview of business models, financing, and exit strategies, which are fundamental concepts for Entrepreneurs. By taking this course, you can gain the knowledge and skills necessary to launch and grow your own business.

See salaries and explore the career path for Entrepreneur

Venture Capital Analyst

A Venture Capital Analyst works with venture capital firms to identify, evaluate, and invest in startups. This course provides a thorough grounding in venture capital financing, valuation, and exit strategies, which are critical areas of knowledge for Venture Capital Analysts. By taking this course, you can gain the skills and insights necessary to thrive in this dynamic industry.

See salaries and explore the career path for Venture Capital Analyst

Investment Manager

An Investment Manager manages investment portfolios. This course provides a comprehensive overview of financing, valuation, and exit strategies, which are essential concepts for Investment Managers. By taking this course, you can gain the knowledge and skills necessary to successfully manage investment portfolios.

See salaries and explore the career path for Investment Manager

Private Equity Associate

A Private Equity Associate works with private equity firms to identify, evaluate, and invest in companies. This course provides a comprehensive overview of private financing, valuation, and exit strategies, which are key areas of knowledge for Private Equity Associates. By taking this course, you can enhance your understanding of the private equity industry and prepare for a successful career in this field.

See salaries and explore the career path for Private Equity Associate

Financial Planner

A Financial Planner provides financial advice and planning to individuals and families. This course provides a solid foundation in financing, valuation, and exit strategies, which are valuable areas of knowledge for Financial Planners. By taking this course, you can enhance your financial planning skills and help your clients achieve their financial goals.

See salaries and explore the career path for Financial Planner

Sales Manager

A Sales Manager is responsible for leading and managing a sales team. This course provides a comprehensive overview of business models, customer retention, and financing, which are key areas of knowledge for Sales Managers. By taking this course, you can develop the skills and strategies necessary to lead a successful sales team.

See salaries and explore the career path for Sales Manager

Consultant

A Consultant provides advice and solutions to businesses. This course provides a solid understanding of business models, financing, and exit strategies, which are valuable areas of knowledge for Consultants. By taking this course, you can enhance your consulting skills and provide value to your clients.

See salaries and explore the career path for Consultant

Investment Banker

An Investment Banker helps companies raise capital through various methods, such as issuing debt or equity. This course provides a deep understanding of financing options, valuation, and term sheets, which are essential concepts for Investment Bankers. By taking this course, you can gain the knowledge and skills necessary to succeed in this role.

See salaries and explore the career path for Investment Banker

Business Development Manager

A Business Development Manager identifies and develops new business opportunities for a company. This course provides a comprehensive understanding of business models, customer retention, and financing, which are key areas of knowledge for Business Development Managers. By taking this course, you can enhance your skills in business development and drive growth for your organization.

See salaries and explore the career path for Business Development Manager

Financial Analyst

A Financial Analyst provides financial advice to individuals and organizations. This course helps build a foundation in financial analysis and valuation, which are essential skills for Financial Analysts. By taking this course, you can develop the knowledge and abilities needed to succeed in this role.

See salaries and explore the career path for Financial Analyst

Operations Manager

An Operations Manager is responsible for the day-to-day operations of a business. This course provides a thorough understanding of business models, customer retention, and financing, which are essential for Operations Managers. By taking this course, you can gain the knowledge and skills to effectively manage operations and drive efficiency.

See salaries and explore the career path for Operations Manager

Marketing Manager

A Marketing Manager is responsible for developing and executing marketing campaigns. This course provides a solid understanding of business models, customer retention, and financing, which are essential concepts for Marketing Managers. By taking this course, you can enhance your marketing skills and drive growth for your organization.

See salaries and explore the career path for Marketing Manager

Product Manager

A Product Manager is responsible for the development and launch of new products. This course provides insights into business models, customer retention, and financing, which are important considerations for Product Managers. By taking this course, you can gain the knowledge and skills to successfully manage and launch new products.

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Loan Officer

A Loan Officer helps individuals and businesses obtain loans. This course provides a basic understanding of financing and valuation, which are important concepts for Loan Officers. By taking this course, you can gain the knowledge and skills to successfully originate and process loans.

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Real Estate Agent

A Real Estate Agent helps clients buy, sell, or rent properties. This course provides a basic understanding of financing, valuation, and exit strategies, which can be helpful for Real Estate Agents. By taking this course, you can gain the knowledge and skills to better serve your clients and succeed in the real estate industry.

See salaries and explore the career path for Real Estate Agent