Essay on Funding a Business

Submitted By studyman33
Words: 564
Pages: 3
Open Document
When funding the growth of a business such as a bed and breakfast there are a few different ways that should be considered. The first way that is very common is to take out a bank loan. Most banks will require that you have a thorough business plan to present to them. This would include such information as the company over view, mission statement, competitive analysis, as well as current and future financial plan break downs. It is also important that whoever is taking out the loan have a good credit history so that they can receive the most favorable loan rates. A second method to fuel a star-up and its growth would be to research and apply for government grants and loans. A grant might be issued to spur economic growth or boost businesses in certain industries in the local area. There also exist microloan programs that help small businesses with start up and expansion. A business will have to go through an intermediary lender to see exactly what requirements need to be met in order to be eligible. This could potentially help our business with the working capital needed for furniture, supplies, and inventory. The Department of Veterans Affairs also works with the Small Business Administration to offer several loan programs to prior military members. This might also be very beneficial because of potential low-interest loans and the and down payment advantages. There is also the possibility of finding venture capitalists or angel investors. These methods usually can take longer to come to agreements and to get all the paperwork in order. Venture capitalist is people who pool their money to invest in a new business idea. This might not be the best idea for our business since we might need to give up ownership, agree to undesirable terms and repayments, or be faced with a conflict of interest with the potential investor. Angel investors invest their money from personal funds in companies that they deem might have potential. Normally they look for companies that have a bigger profit potential or that can even be taken public in the future. Because they are mainly concerned with making a profit and protecting their investment they might want to control and influence how our business is
Show More

Related Documents: Essay on Funding a Business

Funding a Business Venture Essay

FUNDING A BUSINESS VENTURE Shamarcus Dickinson April 4, 2013 As a new company starting out it will be extremely difficult to sell my company’s stock, being that the company is not yet incorporated. As a startup company the best way for me to raise money to fund my company will be to borrow it. I will first need to come up with a business plan and an accurate list of expenses so that I will know the amount that I need to borrow. The startup expense list will include material cost, product…

Words 650 - Pages 3

chapter 10 Essay

Entrepreneurship: Successfully Launching New Ventures, 4e (Barringer/Ireland) Chapter 10 Getting Financing or Funding 1) inDinero, the company profiled in the opening feature for Chapter 10, is described by its cofounders as "the fastest way for small businesses to manage their finances." Which of the following is not true about inDinero's founding story? A) In 2009, inDineor's founders applied to TechStars, which is a Boulder, CO-based seed-stage fund/incubator, and were turned down. B) The…

Words 5792 - Pages 24

Essay on Money: Finance and Business

four different terms concerning funding a business. It will also give a decision on the funding type that is considered to be best, to include reasons, pros and cons of the decision and one other possible option for funding. Unit 2 – The Money Introduction As a potential business owner there are a lot of things to consider when thinking about having a business. Right at the top of that list is funding. Not having enough money to open, expand or operate a business can cause serious concern. Knowing…

Words 818 - Pages 4

Using Retirement Funds to Start a Business Essay

401(k)/IRA Business Funding Fund your business using your retirement funds tax deferred and penalty free. Your 401(k), IRA or other qualified retirement account can be the key to starting your business debt-free and cash-rich. Benetrends’ exclusive Rainmaker Plan® allows you to utilize the full potential of your existing retirement accounts to purchase your own business, thereby enabling you to eliminate or reduce the need for additional loans. Benetrends has been helping visionary entrepreneurs…

Words 976 - Pages 4

Northern Rock Term Paper

Rock ------------------------------------------------- Table of Contents 1 Scope of Study 3 2 Introduction to the Northern Rock Debacle 3 2.1 Introduction to Northern Rock’s Business Model 4 3 Internal Analysis 7 3.1 Analysis of Northern Rock’s Balance Sheet 2006 7 3.1.1 Northern Rock’s Sources of Funding 7 3.1.2 Asset and Liability Maturity Mismatch 2006 8 3.1.3 Peer Group Ratio Comparison to Assess Northern Rock Liquidity Risk 2006 9 3.2 Exposure to Low Probability High Impact…

Words 6715 - Pages 27

Dance: Recycling and Government Training Funding Essay

was split. With it being an amalgamation there could have presented a core problem with their identity, they are made up of business for which this isn't their primary concern, nor their field of interest - as it is a side project they won't prioritize it as highly as some of the others. 2. The initial funding wasn't sustainable - it was a reward for the area fitting a funding criteria - this might and does change meaning that one of its initial investments isn't a possible support if further capital…

Words 1076 - Pages 5

Self Determination Case Study

There is a major portion of the health care funding which is still available for the Self-Determination process. I would like to contribute to the Native American community nationally as well as locally by becoming a valuable asset to the tribes in this Self-Determination process in terms of providing guidance and professionalism helpful to the tribes in assessing their business options. The Health and Human Services (HHS) has historically provided the services…

Words 491 - Pages 2

Essay about Henley PG Business And Management Broch

Postgraduate 2015-16 Business & Management programmes About Business & Management programmes at Henley Business School If you come to Henley to take one of our Business & Management programmes you’ll be joining one of the world’s leading business schools, as our triple accredited rating puts us in the top 1% globally. You’ll learn from internationally-renowned academic experts and thought leaders who have relevant experience in international business, marketing, entrepreneurship, human resource…

Words 6043 - Pages 25

Investment Proposal Report Essay example

Investment Proposal Report Introduction The business idea is for a traditional Chinese tea shop. The idea would be to attract Chinese customers who can purchase a range of expensive teas, made in a traditional fashion. The teas would be sourced from China and there would be many different types. The layout and design of the shop would be of a high quality traditional Chinese style. However, in addition to tea, the shop would also provide food. The shop would be decorated with traditional Chinese…

Words 557 - Pages 3

Creating, Financing and Marketing a Business Essay

Creating, Financing and Marketing a Business Business 100 8/26/12 Creating, Financing and Marketing a Business This paper will focus on the total creation of a new business. First, will be a look at the pros and cons of a partnership as a form of ownership. Next is a review of the different funding options for a small business. Then a description of how managerial accounting can help with cost, incremental analysis and budgeting. Finally is a review of a marketing strategy and how social…

Words 1093 - Pages 5