A E MBA 1 B N NTIRE IN OOK FROM THE AUTHOR OF THE UDEMY.COM COURSE “AN ENTIRE MBA IN 1 COURSE” __________ by Chris Haroun An Entire MBA in 1 Book An Entire MBA in 1 Course Copyright © 2016 by Chris Haroun (Published by www.BusinessCareerCoaching.com) All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means without written permission from the author. Page 2 of 384 An Entire MBA in 1 Book DEDICATION To my incredible students at San Francisco State University! I also want to thank the best professor I have ever had – Matthew Rhodes-Kropf who taught me the practical and entertaining way to learn business concepts at Columbia University. Matt now teaches at Harvard Business School. Thanks Matt! : ) Page 3 of 384 An Entire MBA in 1 Book PLEASE READ THIS FIRST: PURPOSE OF THIS BOOK Many business concepts are simply common sense. This book will focus on business concepts that you need to know that might not be common sense! This book will teach you everything you need to know about business….from starting a company to taking it public. Most business books are significantly outdated. This book leverages many incredible online resources and makes the whole business, accounting and finance process very easy! There are many incredibly engaging and entertaining video links in the book to YouTube and other sources; edutainment rocks! I tried to visualize the content of this book as much as possible as this is a more impactful and enjoyable way to learn (think Pinterest versus the tiny words in the Economist)! The contents of this book are all based on my work experience at several firms, including Goldman Sachs, the consulting industry at Accenture, a few companies I have started, the hedge fund industry where I worked at Citadel and most recently based on my experience at a prominent San Francisco based venture capital firm. I also included helpful practical business concepts I learned while I did an MBA at Columbia University and a Bachelor of Commerce degree at McGill University. Think of this book as a “greatest hits” business summary from my MBA, undergraduate business degree, work experience in consulting, equities, hedge funds, venture capital and starting my own companies. As the title of this book suggests, this is an entire MBA in 1 book; this book will help you accomplish your business career goals. I have minimized “boring theoretical concepts” in this book in order to keep it as close to reality as possible. I hope you enjoy it! In addition to teaching at 4 universities in the Bay Area, you can find other courses that I teach online at : www.tiny.cc/chris1 I hope you enjoy this book! I am a firm believer that ‘edutainment’ works best! Thanks a lot, Chris Haroun : ) Page 4 of 384 An Entire MBA in 1 Book WE WILL COVER THE ENTIRE LIFECYCLE OF A COMPANY! We will start here in Chapter 1…. Page 5 of 384 An Entire MBA in 1 Book ….and we will end here in Chapter 15: Page 6 of 384 An Entire MBA in 1 Book There are 15 chapters in this book as follows: Page 7 of 384 An Entire MBA in 1 Book ABOUT THE AUTHOR Chris Haroun (www.tiny.cc/chris3) is an award winning business school professor, venture capitalist and the author of "101 Crucial Lessons They Don't Teach You In Business School", which Forbes magazine calls "1 of 6 books that all entrepreneurs need to read right now" (www.tiny.cc/Forbes101) along with Peter Thiel's book and The 7 Habits of Highly Effective People. Chris is currently a venture capitalist at a prominent San Francisco Bay Area venture capital firm and has previous work experience at Goldman Sachs and several firms that he has founded. He has successfully raised and also has managed over $1bn in his business/finance career. He has an MBA in Finance from Columbia University and a Bachelor of Commerce Degree with a major in Management Information Systems and International Business from McGill University. Chris is also a frequent guest lecturer at several Bay Area business schools including Berkeley and Stanford. He has written numerous articles and been interviewed in Forbes, VentureBeat, Entrepreneur Magazine, Wired Magazine, AlleyWatch, Pulse as well as an interview on venture capital on Radio Television Hong Kong (RTHK) which is Hong Kong's oldest and sole public service broadcaster. He serves on the boards of several Bay Area technology companies and lives in Hillsborough, California. Chris Haroun's goal is to "make business education impactful and entertaining with no boring theory!" Page 8 of 384 An Entire MBA in 1 Book CONTENTS Dedication .......................................................................................................................................................3 Please Read This First: Purpose of this Book ..................................................................................................4 We Will Cover the Entire Lifecycle of a Company! .....................................................................................5 About the Author ............................................................................................................................................8 Chapter 1: Launching a New Venture..........................................................................................................13 What Makes a Great Entrepreneur / Leader? ..........................................................................................15 The Most Important Business Skill ............................................................................................................16 The Easy Way to Get Customers or a Job! ................................................................................................16 Sources of Entrepreneurial Ideas ..............................................................................................................21 Ethics .........................................................................................................................................................25 Investment Stages .....................................................................................................................................26 What Kind of Legal Entity Should I set Up?...............................................................................................27 What About Taxes? ...................................................................................................................................32 How Do I Stop Competitors from Illegally Copying My Products? ...........................................................34 Chapter Summary: ....................................................................................................................................37 Chapter 2: Presentation Workshop .............................................................................................................38 The Second Most Important Business Skill ...............................................................................................40 How To Create an Impactful Start-Up Presentation .................................................................................57 Chapter Summary .....................................................................................................................................59 Chapter 3: Venture Capital Part 1................................................................................................................60 The Most Important Investment Characteristic Is…. ................................................................................62 What is Venture Capital? ..........................................................................................................................64 How do Venture Capital Firms Make Money? ..........................................................................................65 How Do I Raise Money from a VC Firm? ...................................................................................................66 Chapter Summary .....................................................................................................................................67 Page 9 of 384 An Entire MBA in 1 Book Chapter 4: Venture Capital Part 2................................................................................................................68 The Fascinating History of Venture Capital...............................................................................................70 Chapter Summary ...................................................................................................................................104 Chapter 5: Venture Capital Part 3..............................................................................................................105 How Many Shares Do I Have and How Many Does the VC Have? ..........................................................107 Chapter Summary ...................................................................................................................................124 Chapter 6: Financial Analysis .....................................................................................................................125 Understanding Financial Statements the Easy Way ...............................................................................127 Balance Sheet ..........................................................................................................................................129 Income Statement ...................................................................................................................................135 Cash Flow Statement ..............................................................................................................................138 Financial Ratios........................................................................................................................................144 Income Statement Analysis .....................................................................................................................147 Balance Sheet Analysis ............................................................................................................................148 Chapter Summary ...................................................................................................................................153 Chapter 7: Managing Cash Flow ................................................................................................................154 Making Forecasts ....................................................................................................................................156 Chapter Summary ...................................................................................................................................160 Chapter 8: Financial Capital and Securities Laws ......................................................................................161 Ethics in Finance ......................................................................................................................................163 Financial Capital ......................................................................................................................................165 Risk and Return .......................................................................................................................................176 Cost of Equity Capital ..............................................................................................................................178 Securities Law and Venture Financing ....................................................................................................179 Chapter Summary ...................................................................................................................................181 Chapter 9: Projecting Financial Statements ..............................................................................................182 Late Stage Investment Round .................................................................................................................184 Chapter Summary ...................................................................................................................................205 Page 10 of 384