1,199
29
Essay, 2 pages (300 words)

Raising money and funding

Raising Money and Funding Raising Money and Funding Unsuccessful new businesses are at a rate as high as 95 percent because of several factors. Inadequate expertise by the starters of new businesses is a cause of high chances of failure. Feinleib, 2011, attributes low expertise among starters of businesses to inexperience in operating a business or improper training. Additionally, start-ups have challenges of inadequate finances, which may cause economic distress that may force such start-ups out of business. Competition from already established firms in the market may also play a role in the failure of new businesses.
Financial steps to reduce chances of business failure include ensuring that the business maintains ploughed back profits, good relations with creditors and suppliers, as well as improving entrepreneurial skills (Feinleib, 2011). The factors outlined guard the new business from problems related to inadequate finances and expertise. In addition, a business plan may help foresee potential failure in business.
A business plan is a statement that stipulates the business goals, an evaluation of internal and external business environments, and a plan on the means of attaining goals. The core elements of a complete business plan include the goals of the firm, its background information, means of achieving the goals, financial analysis, opportunities, and threats facing the firm, and the exit strategy (Feinleib, 2011).
Sources of funding for business owners include personal savings, donations from family and friends, bank loans, as well as venture capital. The sources are mainly essential for new businesses as a preventive measure against failure. Because banks may not offer unsecured loans, effective strategies of securing funding include using equity funding where the firm offers to sell part of its value to investors who become shareholders to the firm. In addition, venture capital is preferred, in which case the venture capitalist firm owns part of the firm and shares in its profits upon providing startup capital.
References
Feinleib, D. (2011). Why Startups Fail: And How Yours Can Succeed. New York: Apress.

Thank's for Your Vote!
Raising money and funding. Page 1
Raising money and funding. Page 2
Raising money and funding. Page 3

This work, titled "Raising money and funding" was written and willingly shared by a fellow student. This sample can be utilized as a research and reference resource to aid in the writing of your own work. Any use of the work that does not include an appropriate citation is banned.

If you are the owner of this work and don’t want it to be published on AssignBuster, request its removal.

Request Removal
Cite this Essay

References

AssignBuster. (2022) 'Raising money and funding'. 9 January.

Reference

AssignBuster. (2022, January 9). Raising money and funding. Retrieved from https://assignbuster.com/raising-money-and-funding/

References

AssignBuster. 2022. "Raising money and funding." January 9, 2022. https://assignbuster.com/raising-money-and-funding/.

1. AssignBuster. "Raising money and funding." January 9, 2022. https://assignbuster.com/raising-money-and-funding/.


Bibliography


AssignBuster. "Raising money and funding." January 9, 2022. https://assignbuster.com/raising-money-and-funding/.

Work Cited

"Raising money and funding." AssignBuster, 9 Jan. 2022, assignbuster.com/raising-money-and-funding/.

Get in Touch

Please, let us know if you have any ideas on improving Raising money and funding, or our service. We will be happy to hear what you think: [email protected]