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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
How do you start a small business with no investment?
Virtually every new business requires a certain amount of financial investment. However; financial investment can be minimized depending on the nature of the business that you wish to start. Certain home based businesses only require a marginal financial investment. However; there are a few exceptions. Example: If you are a software programmer, you can probably work from your home requiring only a PC and Internet access. However; if your home-based business involves retailing or manufacturing, you will still require capital primarily for inventory. If you plan to start a business outside of a home environment, capital is required for: Building acquisition or leasing (unless you are fortunate to have someone provide you with a "work place" at no cost. Utilities expense: Telephone; electricity, etc. If you're going to sell a product, you will require funds for inventory unless you can get the inventory on consignment which is virtually impossible if you are a first time business owner. However; consignment may be possible if you can provide a co-signer. Regardless of the type of business, you will most likely require funds for advertising, unless you plan to rely on "passing-by" customers and/or "word-of-mouth". If you want to start a business without having to make a financial investment, another possible solution is to borrow the required startup capital from a person or group of people that know you very well and believe in your business plan. This, however, may have certain shortcomings such as the lender wanting to own more than 50% of the business.
Are Entrepreneurs made or born?
BORN - According to some people, attitude is the most important personal characteristic, and one that cannot be trained. The attitude of the entrepreneur affects the early success of the venture. That same attitude needs to be present in the firm's employees to continue the entrepreneurial energy that creates competitive advantage in the operation of the business, even after it has become a large successful company.
Another opinion:
However, attitude is not everything in terms of actually having success at an entrepreneurial business. Knowledge about financial and marketing is far more important in today's world in order to be able to compete in the economic market, as far as small businesses are concerned. A person can have good aptitude and the drive to get something started, but do they have the knowledge to keep it going and actually earn something from it? MONEY drives business, so much more than attitude will. Thus an entrepreneur can also be made because they have to have the knowledge and skills to make a business on their own work like it should and not have to ride on the coat-tails of their employers. Any dummy can start a business, but it takes a knowledgeable person to make it grow and prosper.
Becoming an entrepreneur requires two things, only one of which can be learned. The first requirement is having the right skill set to run a successful business. Business skills are things like knowing about advertising and marketing, hiring and firing, money and accounting, etc. These things can all be learned.
That said, the second part of entreprenurship is more inherent and not so easily learned. This is the willingness to take a risk. Some people are comfortable with risks, but many people are not. That is fine. Not everyone is an entrepreneur. Some people are artists, some are athletes, some are employees, and some are entrepreneurs. If risk-taking is not your thing, then neither, probably, is entrepreneurship.
3 types of financing decisions under financial management?
The three types of financial management decisions are capital budgeting, capital structure, and working capital.In Some case Dividend decision is also part of financial management part although dividend decision comes under capital structure
How much capital do you need to put up in a pawnshop business?
To answer your question requires a question: is the pawnshop business an on-going business or are you considering starting a pawn shop business?
How to start a clinical laboratory for the clinical research?
What exactly do I need to start off this business?
What is a scope of initial public offering?
The scope of an initial public offering or an IPO is to offer stock to the public for the first time. Many company owners have become instant millionaires during an IPO.
Yes. a good example is facebook. I could not buy the ipo but as soon as the stock went public the price per share was much lower than it is now. I see some info about alibaba. I know of an alibaba in the middle east. It might be something different that this IPO below:
Alibaba Frenzy Escapes Small Investor Lack of Familiarity with Alibaba in U.S. Limits Interest Ahead of IPODoes a non-profit group need to provide W-9's?
I work for a nonprofit and have to provide W-9s all the time, so I think the answer is yes.
VENTURE CAPITAL
In simple words, Venture Capital is defined as private equity capital provided by outside investors for financing of new, growing or struggling businesses.
Venture capital investments generally are high risk investments but offer the potential for above average returns and/or a percentage of ownership of the company. A venture capitalist (VC) is a person who makes such investments. A venture capital fund is a pooled investment vehicle (often a partnership) that primarily invests the financial capital of third-party investors in enterprises that are too risky for the standard capital markets or bank loans.
Venture capital is capital typically provided by outside investors for financing of new, growing or struggling businesses. Venture capital investments are high risk investments but offer the potential for above average returns and/or a percentage of ownership of the company. A venture capitalist (VC) is a person who makes such investments. A venture capital fund is a pooled investment vehicle (often a partnership) that primarily invests the financial capital of third-party investors in enterprises that are too risky for the standard capital markets or bank loans.
As a venture capitalist, you will face the following risks:
Risk of capital losses
Risk of lower rate of return, ……………
- You should be aware of the following POTENTIAL RETURNS from venture investment:
The objective of Venture Capital (VC) is to generate high rates of return over long periods of time. VC offers institutional investors and high-net-worth individuals high returns (historically better than stocks) and strong diversification benefits from very low correlations with other asset classes. The major negatives of investing in VC are long time frames, lack of liquidity, and high management fees.
VC firms typically manage multiple funds formed over intervals of several years. Funds are illiquid but as companies in the portfolio go public or are sold, the investors realize their returns. Funds typically consist of limited partnerships invested in a number of companies. A general rule for the breakdown of returns among VC company investments is 40% will be complete losses, 30% will be "living dead," with the remaining 30% generating substantial returns on the original investment. The big winners yield 10 or more times the original investment.
Venture funding and returns have been unprecedented in recent years and some experts believe venture capital is currently enjoying a phenomenal boom that will lead to a slowdown. Many are projecting single digit returns for the near future, but others believe high returns will continue. According to Venture Economics, the average annual return on VC funds was 48%, 40%, and 36% for 1995, 1996 and 1997 respectively. Many VC firms have reported even higher returns in the last few years and the internet has produced scores of success stories that have yielded remarkable short term returns for VC firms.
ANGEL INVESTING
Angel Investing, in the context of this course, is defined as investing personal money into a business with growth potential.
Angel investors are individuals who invest in businesses looking for a higher return than they would see from more traditional investments. Many are successful entrepreneurs who want to help other entrepreneurs get their business off the ground. Usually they are the bridge from the self-funded stage of the business to the point that the business needs the level of funding that a venture capitalist would offer. Funding estimates vary, but usually range from $150,000 to $1.5 million.
As an angel investor, you will face the following risks:
Risk of capital losses
Risk of lower rate of return
As an Angel investor, you will gets:
No tax breaks when he makes the investment and
No dividends while he holds the investment.
POTENTIAL RETURNS from angel investing can be vary. As can be expected there is a wide range of expectations related to potential returns, the least being 20%, and the highest 100%. The average rate of return on angel investing has been 34%. Several angel investors say that they write off the investment mentally as soon as it was made, given the high risk of this type of investing.
THE MAIN DIFFERENCES between venture capital and angel investing are as follows:
Under Angel investing, individual investor can invest personal money into a business with growth potential (e.g., you can have 10% of equity stake of a company and receive dividends on those shares). As an Angel investor, you should be looking to get involved in an interesting project where he will have a chance to make a large return on investment.
On the other hand, venture capital usually comes from groups who want to make large investments, especially in areas such as high-tech (e.g., mutual fund companies, pension funds, etc.). In addition, Venture capitalists (VCs) sit on boards of companies they fund.
Based on the economic downturn, it would be wise to invest some funds in the real estate market. The house prices are low at this time. It would also be wise to borrow some funds to buy rental property because interest is tax deductible.
TUI FIN509, MOD1, CASE1
What are the advantages and the disadvantages of investing?
Adv:
1. You can save money for your future
2. Your money grows at a good rate when compared to the inflation rate
There are a lot of advantages of investing. The above mentioned two are the main reasons.
Disadv:
1. You may lose money if you choose high risk investment options. Apart from this there are no disadvantages of investment.
In finance the appropriate firm goal in a capitalist society is?
In finance the appropriate firm goal in a capitalist society is to meet the various demands of the society. This is done by amassing wealth which will give power to the society.
This company has a multitude of negative postings around the Internet and nothing positive I can find I for one to answer your question can not find a thing positive. I tried to e mail them and got an auto response and their phone is just an answer machine.
You should look at http://www.complaintsboard.com/bycompany/prospexx-integrated-capital-amp-barrett-capital-exchange-a170973.html
and http://www.ripoffreport.com/Brokerage-Companies/Prospexx-Barrett-Cap/prospexx-barrett-capital-exch-24ccb.htm
and http://www.mortgagegrapevine.com/thread/?thread=564661
and http://insidetradellc.com/blog/list-private-placement-trader-brokers-fraud-avoid/comment-page-3/#comment-243
Sorry I can find nothing positive.
What is financial management decisions?
decision that increases the value of their shares, Thus while performing the finance function, the financial managershould strive to maximize .
How long will it take to wire transfer money from Switzerland to the US?
I have no clue how long it exactly takes but I was sent some money a week ago, and I am still waiting for it to show on my account. I will never wire money again! I will only use Western Union or Money Gram from now on!
Commissioning and start up contract plus definition?
commissioning mean adjustment, testing, and tuning.
What is the easiest way to start a business in the UK?
Hello
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What is the minimum initial investment to run a construction company?
I would say enough money to purchase the necessary insurance and licenses you would need and to pay for materials and labor for the first job.
What are typical start up costs for a small retail business wine store?
Some typical start up costs for a retail store includes the cost of inventory, rent and employee salaries. The amount of money you will need to get your business started varies depending on the type of business you will start.
How do you introduce yourself to lender?
Make an appointment. Introduce yourself and shake their hand.
How payment is made for online jobs through pay pal?
Actually you will apply to paypal for their service if paypal supports in your country banks. Then you can transfer money from anywhere. Banks will cut some charge and paypal will take their service charge. Its just that simple.
a-the sole proprietership doesn't have a separate legal existence (unlike a company). In terms of taxes and legal constraints, sole proprietership is identical to the legal/tax position of the individual. Therefore no unique limitations are imposed. similarly, tax is calculated on the same basis as for the individual taxpayer.
