VENTURE CAPITAL REVIEWER LESSON 1

10問 • 1年前

問題一覧

New ventures need _______

financing

Many entrepreneurship advise starting small dreaming big. It allows the entrepreneur to learn gradually about the enterprise on a smaller scale while taking less risk. you may be able to provide all the start-up money you will need. The entrepreneur grows in knowledge and ability as the business develops and expands.

Start Small

One of the critical factors in keeping a new venture alive. This requires the preparation of a start-up budget that shows the financial requirements of the enterprise. Start–up budget gives the entrepreneur an idea of how much capital is available to sustain the business until profit is realized. The opportunities and ability of the new venture to raise capital will vary, depending on the form of business.

Capital Requirements

Calculating Initial Start – Up Cost (1-12)

1. Determine whether to rent a business space,operate at home, or build a new place. 2. Take into account signage cost. 3.Office furniture and equipment. 4. Machinery and equipment or vehicles. 5. Office stationery and supplies (Administrative). 6.Insurance cost. 7. Licenses and permits. 8. Professional services. 9.Initial raw materials and supplies inventory expense (Production and Operation). 10. Capital requirements for manufacturing equipment and tools. 11. Funds for marketing, advertising and promotion 12. Contingency fund for unexpected expenses.

Monthly Budget for Recurring Expenses

1. Rental or Lease payment. 2. Mortgage payment. 3. Inventory replacement. 4.Labor and employees salaries. 5. Bank charges & Interest payment 6 Insurance premium. 7.Office supplies and stationery 8. Repairs and maintenance expense 9. Cost of utilities 10 Suppliers' bills 11. Sales taxes 12.Transport and delivery expense

Sources of Personal Financing

Personal Financing Family and Friends Bootstrapping (minimizing start-up expenses)

The seed money that gets a company off the ground comes from the founder’s own pocket or personal fund. • Personal savings. • Personal property.

Personal Financing

• 2nd source of funds for many new Ventures. • Form of loans or investment Outright gift • Forgone or delayed compensation Reduced or free rent

Family and Friends

•Cost cutting technique •Money saving tactics

Bootstrapping (minimizing start-up expenses)

Two Basic Types of Financing

Equity Financing - Business angels - Initial public offering - Venture Capital Debt Financing - Commercial Banks - Government financing program - Other sources

MONETARY REVIEWER LESSON 1

Shiela Caber · 11問 · 1年前

MONETARY REVIEWER LESSON 1