Finance A New

Venture

How much money is needed? Where will money come from ? When does the money need to be available .NEEDS FOR FINANCIAL PLANNING IN START-UPS In a financial planning the entrepreneur should clearly answer the following three question .

we can classify the financial needs into following two types  Long term  Short term .Nature & type of capital requirement There are two ways of classifying the financial needs of an enterprise On the basis of extent of permanence . the financial need are classified into two types: ‡ Fixed capital ‡ Working capital On the basis of period of use .

Working capital  Working capital is that amount of funds which is required to carry out day to-day operation of an enterprise .  Working capital called a circulating capital or revolving capital . .

Concept of working capital  There two concept of working capital :  Gross working capital  Net working capital .