This chapter discussed the financial side to entrepreneurship. It talks about the different budgets you need to create and projections you need to achieve in order to have a viable business.The biggest surprise to me, while reading this chapter, was the sheer amount of financial planning that is required too start a business. If I could ask the author two questions the would be:
- Do you think the break even analysis is a better decision making tool as apposed to the common methods of the payback period, the NPV method, or the IRR method?
- If not which method do you think is the best? Why do you think it is the best method?
I would ask these two questions because the tool you use to project the feasibility of your business is an import factor in staring a business. I did not really see anything that I thought was "wrong" per se with what the author said because it was pretty factually based, and did not appear to be incorrect in my eyes.
Great questions for the author, with a very factual reading some might find it difficult to come up with good questions to ask the author but I think your two questions are great. Financial planning is crucial for starting a business, without a realistic plan of costs a business can fail extremely fast.
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