Business Finance Degree
business finance degree
Raising Business Finance: The Journey Towards Executing Your Plan
Raising business finance can often be one of the most challenging things an entrepreneur has to do. A Silicon Valley entrepreneur was recently quoted as saying he believes an entrepreneur should pitch 30 venture capital firms; they should expect to get 3 offers; and then they should go and negotiate further before picking the best. This is a gruelling process if you decide to follow it, with a 90% failure rate!
You should take on board the comments of those that knock you back, but you shouldn’t assume that everyone will feel the same about your idea and your business plan. Obviously you have to believe in your idea, but it is also possible that you will have to adapt your business plan to cater for investor appetite, market dynamics and / or a range of other factors.
Following are some of the ways that you could finance your business, and get your plan off to a flying start.
Loans
Raising money from a bank is hard when you are getting started. This is especially the case if you have not injected a decent amount of equity. Other factors such as experience and the competence of management will also play a part into how safe the bank considers its investment. If the banks refuse, consider approaching family and friends to see if they are able to offer a loan – although there are many downsides to this approach, it’s sometimes the only way to get your business plan moving forwards.
It’s definitely easier to get a loan when your company has a stronger balance sheet. Bankers will often talk about the leverage that a business has. This refers to the ratio of equity to loans that your company uses to finance their business. The lower the ratio, the better your creditworthiness, and the more likely a banker will be to offer a decent loan at a better interest rate.
When you leverage up your business more, you are more likely to be able to increase earnings per share, however you also make your business less stable. Your mind may be torn between equity dilution, growth and stability. Keep in mind, slow and steady doesn’t always win the race. Entrepreneurialism is all about accepting a degree of measured risk; you have to decide how much you’re willing to take to reach your goals.
Equity
It’s sometimes easier to raise equity finance, as a small business, than it is to go to the bank. This is especially the case if you will be investing in intangibles, or an IP-heavy business. Don’t be scared to hand over a percentage of your business if you believe that it will enable you to grow that much faster.
Although there are investors who are willing to look at companies in all sectors and at all stages in their growth cycle, you’re more likely to get a favourable valuation if:
You have a unique idea, a protected idea, or you are likely to benefit from a first movers advantage. Your drive, passion, flair and expertise are all extremely important factors too.
The more progress you have shown, in terms of sales and product development, the more favourable your potential investors will be towards your proposal. Anybody can make a business plan but if you already starting to turn it into reality then you will show that you have what it takes to grow the business further.
Financials are important too. The stronger the balance sheet, the greater the cash flow, the more profitable your company is now – the better. However, earning potential will also play a role in the investors mind.
You have to be prepared for getting plenty of rejection if you want to succeed. If you are determined and persevere long enough you will find an investor.
About the Author
Naz Daud is the founder of CityLocal.
UK business franchises
business franchise opportunities
How can I get a degree in Economics, Business, Finance, and physics without going to school for a decade?
If you take Econ and Finance you can drop Business. Physics it a totally different field and sufficiently difficult that if you try to triple major with it, you will likely flunk out, go insane or die from sleep deprevation.
Consider getting a BS in physics with a minor in Economics then going for an MBA to cover the business and finance aspect.
|
|
Compass binnacle onboard tall ship, Plymouth, Devon, UK Photo Mugs Compass binnacle onboard tall ship, Plymouth, Devon, UK. Compass binnacle onboard tall ship, Plymouth, Devon, UK Copyrighted Work Silverport Pictures… |
|
|
BMV Quantum Subliminal CD Learn Finance: Business School Learning Skills (Ultrasonic Academic Performance Series) $14.99 Program your subconscious mind to learn Finance. Develop your financial skills, study habits, memory and learning for better test scores and peak academic performance. Create life-changing results using state-of-the-art subliminal and brainwave entrainment technology. Tune your brainwaves to specific frequencies by listening to this CD! Program your subconscious mind for positive lasting results, … |
|
|
The Personal MBA: Master the Art of Business $14.00 Getting an MBA is an expensive choice-one almost impossible to justify regardless of the state of the economy. Even the elite schools like Harvard and Wharton offer outdated, assembly-line programs that teach you more about PowerPoint presentations and unnecessary financial models than what it takes to run a real business. You can get better results (and save hundreds of thousands of dollars) by s… |
|
|
Debt-Free U: How I Paid for an Outstanding College Education Without Loans, Scholarships, or Mooching off My Parents $4.99 This book can save you more than $100,000.These days, most people assume you need to pay a boatload of money for a quality college education. As a result, students and their parents are willing to go into years of debt and potentially sabotage their entire financial futures just to get a fancy name on their diploma.But Zac Bissonnette is walking proof that this assumption is not only false, bu… |
|
|
212: The Extra Degree $10.00 212° the extra degree captures the essence of excellence in an unforgettable way… At 211° water is hot. At 212°, it boils. And with boiling water, comes steam. And with steam, you can power a train. The one extra degree makes the difference. In the original 212° the extra degree softcover, the simple 212° concept is illustrated through a clear introduction and then supported by a … |
|
|
Business Finance $89.49 No Synopsis Available |
|
|
Ebook CD-Business Finance $85.35 No Synopsis Available |
|
|
How to Understand Business Finance $12.45 No Synopsis Available |
|
|
Multinational Business Finance $210.2 No Synopsis Available |
|
|
Finance and Accounting for Business $64.92 No Synopsis Available |
|
|
Bundle: Se, Business Finance $89.49 No Synopsis Available |
|
|
Business and Personal Finance $60.18 This book is in New – Excellent condition |
|
|
The VNR dictionary of business and finance $19.55 This book is in Good Used condition |
|
|
Dictionary for Business and Finance, by Terry $1.95 This book is in Acceptable condition |
|
|
Research in International Business and Finance $209.6 This book is in Like New condition |
|
|
Business Finance, by Dlabay $52.35 This book is in Like New condition |
|
|
Encyclopedia of Business & Finance $367 This book is in New – Excellent condition |
|
|
Encyclopedia of Business and Finance $98.78 This book is in Used condition |
|
|
The Entrepreneur’s Guide to Finance and Business $37.46 This book is in New – Excellent condition |
