Monday, June 3, 2019

Managing Financial Resources And Decisions Commerce Essay

Managing Financial Re bloodlines And Decisions Commerce EssayTypically, entrepreneurs are dynamic and enthusiastic virtually their ideas. To be a successful entrepreneur, you neediness near(a) ideas to fulfil a demand. Every entrepreneur must think about money. For the moving in there are some starting times of funding for budding entrepreneurs. Probably little financial risk in earning start-up funds from friends and family, than in borrowing from a institute so have look first to those sources of finance. designate 1A Gardening suffice derriere be a good idea for small business of an entrepreneur. For this small business funds can be individual(prenominal) savings, friends and family, grants etc.If any person uses their savings to dress in business, then the source of finance comes under the heading of ad hominem savings. Most of entrepreneur funded with personal savings.Friends and Family is next fund to start-up business.No one wants to get involved with a start-up co mpany. simply in case of friends and family, user-friendly to collect and hassle free. coin can be collected by friends and family less than 5000.Then my third funds for gardening service go away be Credit Card. this card with pre-loaded cash effrontery by bank. For that we have to pay interest. By credit card fund can be deal 5000.Among these funds, friends and family will be silk hat for the gardening service. Because its easy to collect, it can be big amount for small business, convenient, and easy to start-up for any deal.Producing musical feeding chair for babiesBabies like attraction. A musical chair will be good attraction for most babies. Lots of funds need to start of this business. From that I decide three source of funds- Overdrafts, Personal savings, and Friends and family.Overdrafts can be use in small business. Bank will provide overdrafts on customers demand.Overdrafts are secured funds for business provide by bank. An interest has to pay yearly. enterpriser c an use it any times. So overdrafts can be the good source of finance for this business.Selling customised t-shirt, mugs and other novelty items onlinePeople like to tell on at online to save their time. If I start selling customised t-shirt, mugs and other novelty items online, like other business entrepreneurs I need to select source of funds. funds are saint Investor, Personal Savings, and Overdrafts.Persons who invest in assorted companies at pre-mature stage to make profit and the chance to guide the company call Angel investors. In compare, business enterprise capitalist spend as a profession and in general on behalf of other investors. Angels typically invest their experience funds. The investment from these angels can be from $150,000 to about $1.5 million dollars.These angels are usually entrepreneurs who want to help out promising entrepreneurs with their own businesses. For those reason I like to rising funds by angel investor.Starting a financial consultancyA financia l advisor known asfinancialconsultant, they offer advice aboutmoney management. Most people come tofinancialconsultancy firm for guidance on how to reach their long term financialgoals. To open and run these business three funds can be chosen. .Factoringis where thefinancialassociation advances the entrepreneur cash against income from the entrepreneurs outstanding amount. Factoring is a firm, usually are give a proportion of the invoices value.Factoring is appropriate for this business. Because, this is an institute, they provide funds quickly.Running Bed Break degenerateFor this business as an entrepreneur I can invest by debt financing, friends and family and personal savings.The majority of new small businesses are funded with Debt backing via institutes. Banks will provide with a loan or line of credit that comes with quittance schedule and an interest rate. Loan can be provided by type of business and demand of entrepreneur. For opening of the business debt financing could be best source for funds.For this business like to funded with debt financing. Because dont have to give up righteousness, easy to get loan, maximum banks are giving low interest rate. So debt financing is the best source of funds for the business of Bed Breakfast.Task 2Personal savingsAdvantagesNo equity-holders to pay.Best way to sue savings.Do non need to borrow.No monthly payment.DisadvantagesFunds will be limited.May face a lot of personal debt.May miss out on earning interest.Friends and FamilyAdvantagesFunds are available quickly.May do not pay any interest.DisadvantagesLimited funding.One time funding.May have to pay interest.Risk of intercourse if business does not success.Credit CardAdvantagesLow interest rate.Bank will provide that.This is won funding.DisadvantagesLimited amount.Have to pay interest.OverdraftsAdvantagesSometimes not need to pay interest.Can be used any time.Can by refund any timeDisadvantagesNeed to pay interest.Have to declare for that.Amounts are limited.Angel investorsAdvantagesAngels invest more than money.Provide mentoring and contacts.No monthly payments.DisadvantagesAngels are difficult to find.Take up valuable time.Giving up equity in your company.FactoringAdvantagesProvides funds quickly.Helps companies with a rickety and unstable cash flow.DisadvantagesIncreased accounting oversight and administration.Cost of money is involved in factoring.Debt FinancingAdvantagesYou build a powerful relationship with banker.Dont have to give up equity.DisadvantagesMay be required to provide personal collateral.Have to pay interest.Task 3Cost comparison of the sourcesCost means the amount to be paid for anything bought. Using those sources must have to calculated cost.A Gardening ServicePersonal savings is best for invest in business among other sources. The cost is very low here, only opportunity cost. Cost of Friends and Family also low. But sometimes entrepreneur have to pay interest. For the using Credit Card can be expensive. Be cause bank charge for it. Different bank have different policy to charge for amount.Producing musical feeding chair for babiesIn this business I used overdrafts, personal savings, and friends and family. Here overdrafts have interest cost. But in other two funds no interest cost.Selling customised t-shirt, mugs and other novelty items onlineFunds are Angel Investor, Personal Savings, and Overdrafts for this business. Angel investors very dearly-won to fund, but they invest a lot. Those investor will take money after invest. For personal saving do not have to pay back and in overdrafts have to pay interest.Starting a financial consultancyInvested funds are factoring, personal savings and credit card. An extensive cost of money is involved in factoring and credit card. For investing personal savings only cost is opportunity cost.Running Bed BreakfastI invested debt financing, friends and family and personal savings in running bed breakfast business. In the Debt Financing lots of in terest has to pay to the financial institute. Like interest, security deposit etc, for the personal savings and friends and family no need any deposit. But in friends and family sometime need to pay interestTask 4As a budding entrepreneur I will go for selling customised t-shirt, mugs and other novelty items online. Because now people like to buy novelty items form online to save money and time. Now a days online selling is going more competitive and challenging. As an entrepreneur I like to take challenging jobs. On the other side selecting source of funds are easy and a good amount can be collected.ConclusionIn this business world everything is going very fast so opening a new business is very challenging. Fund collection is one of the most important facts in business. Funds can be collected from different sources. But an entrepreneur must have to select right funds for the right business. Then there is less chance to fail.

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