Raising Finance
Following your conversation with the Barman last week, you have had a chance to think about possible business structures and to talk to one or two people running their own business. Every one of them has asked you how you intend to finance your business. They all work in the service sector but you are interested in manufacturing. The last person you spoke to is Bill, the lorry driver/owner.
Bill You need to figure out just how much capital you need. You know things like fixed assets, stock working capital and the like.
You Well how much did you need?
Bill Don’t think that will help you much. I own my own lorry, have an office in my home and the wife helps out with paperwork. If you want to make something, it’s a different ball game.
You Are you saying we will need a lot more than you did?
Bill I would have thought so. I was able to get a loan from the bank and overdraft facilities. I had to put my house on the line and put some cash of my own in as well.
You Well there are a few of us and we have some assets between us.
Bill That’s a start but whoever lends you money will want to see that you have committed yourselves by risking your own funds. My accountant says the amount they will lend compared to what you put up has got something to do with ‘gearing’. He also says when you raise money for things you need to think about ‘matching’.
You So should we go to the bank manager then?
Bill Well you can but for your type of business it’s not the only way of raising finance. Have you thought about selling shares, equity finance, venture capital. You might want to think about borrowing from family and friends but that can be a bit dodgy. Then there might be grants and tax breaks for new businesses.
You Sounds like we have a lot to learn.
Bill Yes and in a short time. One piece of advice I will give you for free. If you go for this when you do raise finance make sure you raise enough to get through the start up period. The last thing you need is good sales and a cash flow problem.
Learning Outcomes
Following this PBL cycle you should be able to:
o Discuss the requirement for capital and explain the terms, fixed assets, stock and working capital giving illustrative examples.
o Explain why different types of business (eg service v manufacturing) have different requirements for capital.
o List possible sources of finance.
o Analyse the way that these differing finance methods work and draw conclusions about their advantages and disadvantages for your business idea.
o Explain the concept of ‘gearing’ and draw some conclusions about what sort of ‘gearing’ is likely to be required for your business.
o Discuss the concept of ‘matching’ in the context of raising money for business purposes.
o List the grants that are potentially available for the type of business operation you are proposing along with relevant conditions.
o Discuss any tax incentives that may be available for your proposed new business.
Resources
Library Catalogue
Small Business Guides
How to start ad run your own Business etc
Internet
www.startinbusiness.co.uk
www.bbc.co.uk/learning/subjects/business_studies.shtml
http://news.bbc.co.uk/1/hi/business/
www.businesslink.gov.uk/bdotg/action/home?&domain=www.businesslink.gov.uk
www.smallbusiness.co.uk
www.startups.co.uk
Our Service Charter
-
Excellent Quality / 100% Plagiarism-Free
We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers. -
Free Revisions
We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed. -
Confidentiality / 100% No Disclosure
We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service. -
Money Back Guarantee
If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit. -
24/7 Customer Support
We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.