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Write You - 3 Types of Capital Investment for your Business - from a South African Perspective
For many people, the possibility of selling goods online appears fraught with difficulties. Firstly, you need to locate a product, store inventory, organise a good shipment or carrier company and so forth. But what if you could become a successful online retailer without having to worry about those problems?The answer is that you can…a simple type of retail called drop shipping. Let us take a look at the pros and cons of this
Forms of equity financing:
1. Personal funds
It is the most common source of funding a business. It comes either from personal savings or a re-mortgage on a house.
2. Friends and relatives:
As the name suggests, this form of financing is derived from the support of friends and family. People who know you and trust your business concept. However there are potential pitfalls, money, friends, family and an unsuccessful business do not go hand in hand.
3. Equity shares:
This form of financing normal
When it comes to gaining comprehensive business support, an increasing number of companies are moving to serviced offices as their solution. So, why is this a growing trend?Serviced offices provide a resourceful approach to business which, in many respects, exceeds conventional offices. As an extension of your company, a serviced office will cater to your firm's unique needs and adapt according to your changing circumstances -
1. Fixed Capital:
Fixed capital refers to your business needs to buy fixed assets. This means that you need the capital to buy things like buildings, machines, computers, vehicles and furniture. These items are normally purchased for use in the business and not for resale. The purpose is to generate sales. They do not have a resale value and can be liquidated again, but in most instances lose value over time. This is called depreciation. Depreciation is seen as an expense and is recorded in the income statement. Land is the only item that does not depreciate. Fixed assets on the other hand are recorded in the balance sheet. When planning your business you must determine how much you will need for fixed assets. This capital will then be fixed and will not be available to for something else. Note that there is generally a cost linked in obtaining such capital. This will limit the amount that you can justify. careful planning of your fixed asset requirements is therefore necessary.
2. Working Capital:
Apart from buying assets for your business, you will need cash to run your business. Capital that will work for you and generate a profit. Working capital is used to buy items like raw materials, paying wages and electricity. Since you wont have have an unlimited amount of money available and sales income is not always sufficient, planning your money supply is very important. To know how much money you are going to need and at what stages, you will have to compile a cash flow statement. Remember working capital is not profit, it is money needed to generate profit in the long term.
3. Growth Capital:
Growth capital surfaces when an existing business expands or changes it direction. For example, a small manufacturer of TV cabinets sees his business skyrocket in a short time period. With orders streaming in , the business needs a sizeable cash infusion to increase the plant size to keep up with the huge demand.
Just a final note on equity financing, in general there are two main sources of funding for a business namely debt and equity financing. The main difference between the two is that with debt financing the lender does not acquire ownership or any say in the day to day running of the business. However, the cost of such a benefit is interest that you must pay on the amount borrowed. Equity financing does not normally involve any costs such as interest but you might have to sacrifice a certain percentage share in ownership.
Forms of equity financing:
1. Personal funds
It is the most common source of funding a business. It comes either from personal savings or a re-mortgage on a house.
2. Friends and relatives:
As the name suggests, this form of financing is derived from the support of friends and family. People who know you and trust your business concept. However there are potential pitfalls, money, friends, family and an unsuccessful business do not go hand in hand.
3. Equity shares:
This form of financing normall
You trust your briefcase to hold your working life. Yet it gets banged, jostled, knocked around, even wet, especially in the crowded city. When you finally make it to the office, or return home, there is always an anxious moment, opening the lid and waiting for the results inside. Did your precious cargo survive?The time has come for you to stop worrying about your old leather briefcase. The next generation in office equipmen
2. Working Capital:
Apart from buying assets for your business, you will need cash to run your business. Capital that will work for you and generate a profit. Working capital is used to buy items like raw materials, paying wages and electricity. Since you wont have have an unlimited amount of money available and sales income is not always sufficient, planning your money supply is very important. To know how much money you are going to need and at what stages, you will have to compile a cash flow statement. Remember working capital is not profit, it is money needed to generate profit in the long term.
3. Growth Capital:
Growth capital surfaces when an existing business expands or changes it direction. For example, a small manufacturer of TV cabinets sees his business skyrocket in a short time period. With orders streaming in , the business needs a sizeable cash infusion to increase the plant size to keep up with the huge demand.
Just a final note on equity financing, in general there are two main sources of funding for a business namely debt and equity financing. The main difference between the two is that with debt financing the lender does not acquire ownership or any say in the day to day running of the business. However, the cost of such a benefit is interest that you must pay on the amount borrowed. Equity financing does not normally involve any costs such as interest but you might have to sacrifice a certain percentage share in ownership.
Forms of equity financing:
1. Personal funds
It is the most common source of funding a business. It comes either from personal savings or a re-mortgage on a house.
2. Friends and relatives:
As the name suggests, this form of financing is derived from the support of friends and family. People who know you and trust your business concept. However there are potential pitfalls, money, friends, family and an unsuccessful business do not go hand in hand.
3. Equity shares:
This form of financing normal
Do you really need a business mission statement? Is it just some fancy words to put in that business plan that collects dust on your shelf, or is there really more to it?One of the key attributes of successful businesses is that they clearly know what they do. Defining the goal or the "mission" of your business can be the key to your success.A good mission statement does three things:" States what business you
3. Growth Capital:
Growth capital surfaces when an existing business expands or changes it direction. For example, a small manufacturer of TV cabinets sees his business skyrocket in a short time period. With orders streaming in , the business needs a sizeable cash infusion to increase the plant size to keep up with the huge demand.
Just a final note on equity financing, in general there are two main sources of funding for a business namely debt and equity financing. The main difference between the two is that with debt financing the lender does not acquire ownership or any say in the day to day running of the business. However, the cost of such a benefit is interest that you must pay on the amount borrowed. Equity financing does not normally involve any costs such as interest but you might have to sacrifice a certain percentage share in ownership.
Forms of equity financing:
1. Personal funds
It is the most common source of funding a business. It comes either from personal savings or a re-mortgage on a house.
2. Friends and relatives:
As the name suggests, this form of financing is derived from the support of friends and family. People who know you and trust your business concept. However there are potential pitfalls, money, friends, family and an unsuccessful business do not go hand in hand.
3. Equity shares:
This form of financing normal
It’s a tough job market out there. It is sufficiently tough that when you are lucky enough to get a job interview, make the most of the opportunity.Dress properly for the job you are being interviewed for and the company giving it.If you interview for a job as a mail clerk with a bank, for example, you might think “mail room equals casual clothes.” If the employer is local, it is a good idea to stroll through the lobby
Just a final note on equity financing, in general there are two main sources of funding for a business namely debt and equity financing. The main difference between the two is that with debt financing the lender does not acquire ownership or any say in the day to day running of the business. However, the cost of such a benefit is interest that you must pay on the amount borrowed. Equity financing does not normally involve any costs such as interest but you might have to sacrifice a certain percentage share in ownership.
Forms of equity financing:
1. Personal funds
It is the most common source of funding a business. It comes either from personal savings or a re-mortgage on a house.
2. Friends and relatives:
As the name suggests, this form of financing is derived from the support of friends and family. People who know you and trust your business concept. However there are potential pitfalls, money, friends, family and an unsuccessful business do not go hand in hand.
3. Equity shares:
This form of financing normal
Often students in schools are involved in projects that require the class or students to raise additional money to cover the cost of that project. Some of these projects could be the raising of money to purchase band uniforms, go on a class trip, take a trip oversees, etc.To help raise additional revenue there have been many creative fundraising efforts conducted. Some of these fundraising efforts include car washes, bowl-a-th
Forms of equity financing:
1. Personal funds
It is the most common source of funding a business. It comes either from personal savings or a re-mortgage on a house.
2. Friends and relatives:
As the name suggests, this form of financing is derived from the support of friends and family. People who know you and trust your business concept. However there are potential pitfalls, money, friends, family and an unsuccessful business do not go hand in hand.
3. Equity shares:
This form of financing normally refers to partnerships and closed corporations. This option provides an opportunity to get hold of additional capital for the business by accepting a partner or a member who possesses the financial means, but usually means a sacrifice in percentage ownership.
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