1. PLANNING FOR CHANGE
CHAPTER Nineteen

2. The Components of a Contingency Plan
Identifying potential risks
Buffer strategies to protect against potential risk that can’t be prevented
Assess supply chain risks
Product liability
The loss of key employees
Taxes and regulations
Firm’s capabilities and the VIRO test

3. The Components of a Contingency Plan
Calculating the probability that the risk will occur
Assigning a level of significance to the losses
Calculating the overall risk of loss @ Risk software

4. Crises and Symptoms Harvest/Stability

5. Dealing with Failure: Bankruptcy
Chapter 11
Chapter 11 reorganizes the business so it can continue operating and paying its debt
Chapter 7
An order for relief
It liquidates the assets and discharges most types of debt

6. Dealing with Failure: Bankruptcy (continued)
Chapter 7 (continued)
Advice for making a bad situation better
Talk to other entrepreneurs who have been in similar situations
End a business before it affects the entrepreneur’s life
Never commingle personal/business funds
Do not ignore the government
Begin looking for opportunity
Pay back investors first

7. The Harvest Plan The essence
Capturing Value Starts at inception of the idea

8. Harvest Strategy Guidelines Patience Realistic valuation
Outside advise

9. Harvest Options Seven principle avenues “Capital cow”
Employee stock ownership plan
Management buyout
Merger, acquisition, and strategic alliance
Outright sale
Public offering

10. Notes on Valuation of Closely-Held Firms
Loss of key man
Discounts for non-marketability
Perspectives
CPA
Legal
Beta

11. Entrepreneur/Entrepreneurship
Entrepreneurship is
A mindset
A set of attitudes
A skill set that can be learned
Who should be an entrepreneur?
Anyone who wants to experience the freedom and independence that comes from knowing that opportunity and resources to make that opportunity a reality are within their grasp!

12. Success in the Entrepreneurial Process
Two habits necessary
A passion for achieving goals
A relentless competitive spirit and desire to win

13. Secrets to Success Seven points for your contemplation and amusement
There are no secrets; understanding and practicing the fundamentals, along with hard work, will get results
As soon as there is a secret, everyone else knows about it, too; searching for secrets is a mindless exercise
Happiness is a positive cash flow

14. Secrets to Success (Contd.)
If you teach a person to work for others, you feed him or her for a year, but if you teach a person to be an entrepreneur, you feed him or her, and others, for a lifetime
Do not run out of cash

15. Secrets to Success (Contd.)
Entrepreneurship is fundamentally a human process, rather than a financial or technological process; you can make an enormous difference
Happiness is positive cash flow