Business Financing
Discuss various sources of financing , including govt agencies and venture capital firms. Describe similarities and differences . Include creative means entrepeneurs use to start and stay in business. How are financial statements used in analyzing, forecasting and making management decisions.
One of the most important issues facing all businesses, whether a business in the
start-up phase or well-established, is the obtaining of appropriate levels of financing.
Whether it is needed for investing in land, buildings or equipment, hiring new
employees, investing in inventory or moving into new markets, obtaining
sufficient financing to accomplish these goals is a dilemma nearly
all business owners face The most common sources of business financing which
will be discussed in this letter are as follows: personal savings/”love money”,
conventional debt financing (banks/credit unions), government
assistance, business partners/strategic alliances, venture capital
and “going public” The greatest percentage of businesses are financed for start up
using personal savings. The most obvious advantage of using personal
savings to start up or expand your business is that you relinquish no
control over your business. However, it is relatively rare for a business owner to have
sufficient personal savings to completely finance his or her business. Personal
savings are often used in conjunction with other
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