Professional Documents
Culture Documents
Personal savings
The entrepreneur should contribute at least 50% of the starting
up capital.
If an entrepreneur is not willing to risk his own money
potential investors are not likely to risk their money in the
business either.
Friends and family members
Commercial banks
Asset-based lenders
Inventory financing
Trade credit
Insurance companies
Venture capital
Some people are endowed with good product ideas, but lack
the necessary funds to translate these ideas in to production.
CONT…
The concept of venture capital was evolved to help such
persons.
Venture capital is a form of equity financing of projects with
high risk and high return.
It is meant for financing high technology projects.
Loans
Profit-and-loss forecast;
Cash-flow forecast;
Break-even analysis;
Ownership interest;
A manager
o As a manager you will coordinate the people, processes, and
Cut expenses.
Managing Purchases
Managing Inventory
Finding the right level of inventory is necessary.
analyzing ratios
CONT…
Managing People
The quality of an organization depends on the quality of people
it hires and keeps.
Getting and keeping competent and motivated employees is
critical to the success of the organization.
treating people appropriately by giving the tools, training, and
incentives they need to do their jobs.
Information System
Increases in capital
CONT…
Increases in profitability
Increases in other financial measures
growth are
Survival
Integration
Vertical Integration
Backward integration
Joint venture
Merger
means a combination of two or more firms in to one.