Survey to Sources of Financial Availability
November 27, 2012
SURVEY TO SOURCES OF FINANCE AVAILABLE TO A BUSINESS
INTRODUCTION
Financing is the basic element to start a business and without financing or funding a brilliant or workable profit idea or scheme is just a waste of time. To convert a business plan into a workable business it is essential that reasonable sources of funds are available for the following. * Startup Cost * Raw Material and Working Capital * Production / Service process * Marketing / Sales
Raising finance for start-up requires careful planning. The entrepreneur needs to decide for the following when considering to start a new business. * How much finance is required? * When and how long the finance is needed for? * What security (if any) can be provided? * Whether the entrepreneur is prepared to give up some control (ownership) of the start-up in return for investment?
The sources of finance may be available for a business is one way of categorizing the sources of finance for a start-up is to divide them into sources which are from within the business (internal) and from outside providers (external).
INTERNAL RESOURCES
The main internal resources can be tabulated as below but not limited to.
PERSONAL SOURCES
Personal Sources are the personal financial arrangement made by the founder of the business. This can be personal savings or other cash balances that have been accumulated. It can be personal debt facilities which are made available to the business. It can also simply be the found working for nothing! The following are some example of personal financial arrangements.
Savings and other “nest-eggs”: An entrepreneur will often invest personal cash balances into a start-up. This is a cheap form of finance and it is readily available. Often the decision to start a business is prompted by a change in the personal circumstances of the entrepreneur – e.g. redundancy or an inheritance. Investing personal savings maximizes the control the
SURVEY TO SOURCES OF FINANCE AVAILABLE TO A BUSINESS
INTRODUCTION
Financing is the basic element to start a business and without financing or funding a brilliant or workable profit idea or scheme is just a waste of time. To convert a business plan into a workable business it is essential that reasonable sources of funds are available for the following. * Startup Cost * Raw Material and Working Capital * Production / Service process * Marketing / Sales
Raising finance for start-up requires careful planning. The entrepreneur needs to decide for the following when considering to start a new business. * How much finance is required? * When and how long the finance is needed for? * What security (if any) can be provided? * Whether the entrepreneur is prepared to give up some control (ownership) of the start-up in return for investment?
The sources of finance may be available for a business is one way of categorizing the sources of finance for a start-up is to divide them into sources which are from within the business (internal) and from outside providers (external).
INTERNAL RESOURCES
The main internal resources can be tabulated as below but not limited to.
PERSONAL SOURCES
Personal Sources are the personal financial arrangement made by the founder of the business. This can be personal savings or other cash balances that have been accumulated. It can be personal debt facilities which are made available to the business. It can also simply be the found working for nothing! The following are some example of personal financial arrangements.
Savings and other “nest-eggs”: An entrepreneur will often invest personal cash balances into a start-up. This is a cheap form of finance and it is readily available. Often the decision to start a business is prompted by a change in the personal circumstances of the entrepreneur – e.g. redundancy or an inheritance. Investing personal savings maximizes the control the