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Startup Finance
Starting a business requires capital or funds. This is called startup finance. Funds could come from a business loan, personal savings, angel investors, grants, venture capitalist or may even include buying a business to fund another.
435 Questions
What does beta risk do to the determination of the cost of capital?
Beta risk arrived through regression technique (regressing stock return and market return) is the key data used to arrive at the cost of equity using CAPM model. The risk premium is calculated using Beta, and risk free return is added to it in order to arrive at cost of equity.
When entrepreneurs look for venture capital they are looking for?
investors willing to risk money in a new company in return for the chance to get a lot of profit for their money
What business can we do with TK.25000 in Bangladesh?
TK 25000 is a small money (1 Euro is 100 BD Taka). One can hire a small shop on rental (just 3 by 3 meters) in a provincial town and sell some daily necessity commodities. There will have limits in articles and quantities.
Is a private bank a venture capital?
No. Banks usually do not provide Venture capital funding. It is usually wealthy businessmen who provide such funding.
Venture capital:
Venture Capital involves the financing of start-up companies. These companies generally don't have the ability to source capital from traditional sources like banks or public markets as they are in the early stages of their life cycle and often generate negative cash-flows. So, rich individuals who can afford to take huge risks usually invest or rather fund such new business ventures.
Financial is provided during the following 3 stages:
1. Seed Stage - For research, assessment and development of an initial concept
2. Start-up Stage - To finance product development and initial marketing of the product
3. Expansion Stage - For the increase of production capacity, development of markets or products or enhancement of working capital.
Who may use venture capital finance?
The Funds available to Venture Capitalist can be used by anyone having firm idea and he/she should be able to convince VC with his/her Idea.
What jobs can i find with a bachelor degree in business finance?
A person with 4 year degree in finance can find jobs in financial companies as well as most other companies. Banks and Insurance companies hire finance majors for their accounting departments, for the most part. And, finance related jobs can be found in most companies that have an accounting department. Job titles range from Credit Analyst to Accountant.
Where can you find a person who can give big finance for business?
My self sushil srivastava, and present time i am runing a company for which i need financer My self sushil srivastava, and present time i am runing a company for which i need financer
What Venture Capital firms would fund an online university startup?
If you are a 'start-up,' your initial round of financing typically is from yourself, friends and family; a second round usually is from angel investors. Under most scenarios, venture capital firms will consider investing after the company has operations, generating revenues and seeks $1-million and more capital.
What is example of venture capital?
One example of venture capital is taking a $1M investment and selling half your company. The value the investment is $2M.
Compare a sole trader with a franchise?
Sole trader - where a business is set up by one person
Advantages:
Has their own say
Makes their own decisions.
Disadvantages:
Unlimited liability - have to pay everything yourself if you lose money.
Franchise - where you buy into an existing company e.g. Mcdonalds
Advantages:
You are part of a well-known company
Limited liability - if you lose monet, you only lose what you put in.
The company you have bought into will provide the money
Why an organisation needs to keep pace with IT developments?
An organization needs to keep pace with IT developments to remain competitive in the business world. Technology is growing at a rapid pace, and keeping in touch with new ideas and technologies keeps your business at the top of the leaderboard.
What are the sources of funds of a sole proprietor partnership and a company?
Obtain or negotiate prepaid client or customer funds. Use discounts as incentives.
Use a customer contract or receivables as collateral for loan.
Or if you have receivables use a 'Factor'.
Get a higher price. Or add features to justify a higher price. Extend your brand.
Do a low cash or even a no cash start up. The more radical the better.
Know the difference between 'wants' and 'needs'.
What is the salary of a lecturer in Ireland with a Ph.D?
Check out the website for the University of Cork. It will provide payscales for professors, lecturers, etc. And the pay is quite high compared to London. Dublin Universities also seem to pay well.
What does it cost to start up a coin car wash?
You can answer that question yourself by calculating your projected start up costs. These costs will include, but not limited to, (1) business formation costs, (2) licensing costs, (3) real estate and facility acquisition / construction costs, (4) supplier costs, (5) initial marketing costs, (6) initial inventory costs, (7) employee costs and many more costs.
You probably should list all of the costs you can imagine in starting this business and strive to obtain an objective measurement of each cost. The summation of all of these costs will be your start-up costs and you, as the owner and manager of the business, will realize immeasurable benefits by conducting this exercise yourself.
What do you understand by the term finance?
The words financial management can be interpreted in a few ways. The most accepted definition is the use and organization of money.
What are the start up costs for a copy shop?
The cost of starting up a copyshop depends on the volume and size of the shop.
In order to make profit you need more than a copier.
With the copier you can copy & print most things like flyers, business cards, school and business work and so on.
But you should also be able to make stamps, stickers, t-shirts, buttons, mugs, caps and so on.
You can start up with as little as $4000, but I started up with $60 000 because I focus on bigger and better machines to handle more volume.
20 000 for a color copier and quite a bit more for a black and white model with advanced finishing possibilities.
Business card cutters, dye sublimation printers and different heat presses.
I started with silk screen printing as well. And I make stamps with a stamp creator.
I bought a Roland machine to cut stickers and other materials. I also bought an engraving machine. To mention a few.
I also plan to buy a Ricoh duplicator to be able to print flyers and stuff like that dirt cheap.
Since I started with a lot of equipment I quickly started to make money, and after a few month (4) I started to make profit.
I send out flyers made in house, to businesses that I want as a customer.
I am now the sole supplier of copying and printing services for a couple of larger businesses. I gave them a good price, and they can focus on what they know best.
I can supply them with professional looking catalogues, CD covers (I burn CDs and DVDs as well) and other high volume printing.
They send me the files on e-mail and I print it the way they like. Then I deliver the copies to the right person as soon as possible. They don't even have to walk up to their own printer to get the copies. This has resultet in many smaller jobs as well.
We print catalogues for companies all over the country now. This is high volume, but the profit is not that high. But all in all it gives a few extra thousand a week in revenues.
I accept walk in customers as well. From just 1 copy to several million (in my dreams).
I talked to a service technician to find out which copier I should buy, and I'm very pleased with my choise. The machine has the capability to print about 8000 sheets of paper after I go home at night. In the morning the job is finished and I can start to make the bill.
I believe you can start up with much cheaper equipment, but it gives you more work and takes more time. You will not be as competitive on high volume jobs because a small copier can cost 5 times as much per page as a larger model.
I think $4000 is the lowest you should go. Then you have a small color multifunksjonal machine, a small cutting machine, an even smaller back-up copier and a heatpress. You can make the stickers on the copier. The t-shirt and mug prints can be made there too.
But quality and price wise... you will not be able to compete with companies like mine, and those whoose bigger.
>Your location is often more important on how much you need to invest. No competitors will give you higher margins, so your machines can be more expensive to run, and still give you a good profit.
What are fundraising strategies?
The technical answer is that strategies are a game plan containing specific and realistic goals that organization agrees to follow.
Each organization needs to develop their own strategy specific to their needs; there isn't just one set strategy that everyone can follow.
How do you start a security guard agency in Texas?
Starting a security company, initially, is just like starting any other business. First, do your homework. First, clearly define the specific products and services that you'd like to bring to market. Security is a HUGE industry- do you intend to provide guard services, investigations, alarm systems, access controls systems, executive protection?
Once you've defined your products/ services, make an honest assessment about how your service fits into your intended market. What are the advantages/ disadvantages/ strengths/ weaknesses of your specific products/ services? Who is your competition? How will you get your products/ services in front of prospective clients? What is the market potential for your products/ services in your market area?
Look at Texas licensing and registration requirements for your intended products and services. This is all regulated by the Texas Department of Public Safety- Private Security Bureau. You can find this information at http:/www.txdps.state.tx.us/psb There are various experience requirements and other factors required to open a private security company in Texas.
Next, start creating a business plan and budget. Going through this process will naturally help you to think though much of what you need to know to start a business. Remember, nobody gets their plan right on the first draft. It's an evolution. Be patient, honest, and use the process as a guide to discovery and testing your ideas.
Getting assistance from an CPA and/ or attorney is also a good idea. They can help you with selecting what type of business entity is best for you, planning your budget and related financial details and offer assistance with contracts and other legal documents.
There are also a variety of other resources and organizations to help you in starting a business, such as SCORE. Many of these resources provide advice and assistance at little or no cost.
Specific to security, I would also invite you to contact my company, Signal 88 Security Texas. We are part of a national security firm who offers security franchise opportunities based on our successful model. We provide all the assistance and resources you'll need; including our branded products and proprietary technology, full training and ongoing support with marketing, operations and administration of your business. Here in Texas, we also assist with all licensing and registration requirements. You can find detailed information at our website www.signal88security.com or email me at fpetro@signal88security.com
For which decision areas is the financial manager responsible?
Answer-Modern approach of financial management provides a conceptual and analytical framework for financial decision making. According to this approach there are 4 major decision areas that confront the Finance Manager these are:- a) Investment Decisions; b) Financing Decisions; c) Dividend Decisions d) Financial Analysis, Planning and Control Decisions
What are the benefits of a forward linkage?
One benefit of Forward Linkage is that the success of one business can be used to help a business in progress.
# NetFlix was able to offer a lot of obscure DVDs to many states and regions at a time when most video rental stores carried a limited selection of DVDs. # NetFlix enables customers to store lists of movies that they want to see so that they can easily remember and order movies from their list. # NetFlix has a software program, CineMatch, which recommends DVDs to customers, based upon the database of films that they have rented and liked.
In the 1940s, films were only available in movie theaters. In the 1950s, television became popular. At that time there was concern that people would stop paying to see movies in the theater. Instead, film studios released films on TV and got money to produce new films made exclusively for TV. In the 1980s, video cassette recorders (VCRs) became popular and entrepreneurs founded movie rental stores, where consumers could rent movies of their choosing on video. Again, there was a fear that new technology would lower the profits of Hollywood movie studios. To avoid this, intellectual property laws were devised to protect the profits of movie studios and actors. Despite initial fears that new technology would put them out of business, each innovation has made traditional Hollywood studios more profitable by providing new opportunities to promote films and movies. When digital video disks (DVDs) and the Internet arrived on the market, another opportunity was created. Reed Hastings was tired of the late fees charged at video rental stores. He created a new business model for renting movies using the Internet. Customers could order films online. DVDs would be mailed directly to their homes, and customers could keep the DVDs as long as they liked. When they returned a DVD by business-reply mail, another DVD was automatically mailed to them. Hastings founded a business called NetFlix in 1997 and started offering DVD subscriptions through the mail in 1999. The business has three key components that helped differentiate it from other similar services and contribute to its success: It took a couple years before NetFlix earned a profit. In the beginning, the cost of buying DVDs, paying employees, advertising, and negotiating deals was more expensive than the subscription fees customers were paying. To cover these start-up costs in the first few years, Hastings negotiated for venture capital from private investors. The term venture capital refers to money used to fund a high-risk business opportunity. High-risk business opportunities may result in large profits or they may result in lost money. The investors in NetFlix either loaned money outright to the company or they bought shares of the company. If a business takes off and becomes a success, these initial investors can make many times more money than their initial investment. The NetFlix investors included corporations and groups of wealthy people who pooled their money together. By 2005 NetFlix had more than 3 million customers and had earned over $660 million. The company appears to be a success. However, the idea of renting DVDs by mail is not proprietary to NetFlix, meaning that they do not own the idea in the form of a patent. Now other competitors such as Blockbuster Video, Amazon.com, and Wal-Mart are offering DVD mail-delivery programs. NetFlix succeeded by making millions of dollars for its entrepreneur founder Reed Hastings. Now the question is whether NetFlix can continue to expand and generate profits. It has several advantages because it was the first business to offer DVD rental by mail. It has a large customer base and a large database of movies, as well as proprietary software to recommend new films to customers that reflects their movie preferences.
