Managing Financial Resources
Table of Contents
Choosing a Financial Source
1. Sources of Finance……………………………………………………Page 3
2. Term Length of Funding……………………………………………...Page 5
3. Venture Capital Sources……………………………………………....Page 5
Decision Making
1. Team Building………………………………………………………...Page 6 2. Cost of Finance………………………………………………………..Page 7 3. Flow of Cash…………………………………………………………..Page 8
4. Balance Sheet………………………………………………………….Page 9
Financial Performance
1. Financial Statements…………………………………………………..Page 11
2. Balance Sheet and Accounting Ratios………………………………...Page 12
3. Comparisons between financial statements…………………………...Page 15
Financial Analysis
1. Cash Flow Statement………………………………………………….Page 18
2. Cash Flow with Inflation……………………………………………...Page 19
3. Investment and project appraisal……………………………………...Page 20
Bibliography…………………………………………………………….Page 21
Choosing a Financial Source
1. Sources of Finance
As every business needs to draw on sources of finance David too need to obtain adequate funds. These supply the business with the funds to carry out its actions. There are a variety of sources of finance. Some of the more important ones include:
• Personal Investment and friends/family
• Loans and Overdraft
• Share Capital
• Venture Capital
• Retained Earnings
Personal Investment and friends/family
When commencing a new business, very often the initial funds invested will come from the individual’s personal savings. The tendency of business start-ups to approach relatives and friends to help finance the venture is also a widespread practice. David can start from investing the finances available to him on person or borrowed from friends/ family. This can be the balance of his bank account or the use of his assets. The advantage will be the trust his gaining within the other financial providers by risking his own money.
Loans and Overdraft
Banks provide money to build money. Decisions on
Choosing a Financial Source
1. Sources of Finance……………………………………………………Page 3
2. Term Length of Funding……………………………………………...Page 5
3. Venture Capital Sources……………………………………………....Page 5
Decision Making
1. Team Building………………………………………………………...Page 6 2. Cost of Finance………………………………………………………..Page 7 3. Flow of Cash…………………………………………………………..Page 8
4. Balance Sheet………………………………………………………….Page 9
Financial Performance
1. Financial Statements…………………………………………………..Page 11
2. Balance Sheet and Accounting Ratios………………………………...Page 12
3. Comparisons between financial statements…………………………...Page 15
Financial Analysis
1. Cash Flow Statement………………………………………………….Page 18
2. Cash Flow with Inflation……………………………………………...Page 19
3. Investment and project appraisal……………………………………...Page 20
Bibliography…………………………………………………………….Page 21
Choosing a Financial Source
1. Sources of Finance
As every business needs to draw on sources of finance David too need to obtain adequate funds. These supply the business with the funds to carry out its actions. There are a variety of sources of finance. Some of the more important ones include:
• Personal Investment and friends/family
• Loans and Overdraft
• Share Capital
• Venture Capital
• Retained Earnings
Personal Investment and friends/family
When commencing a new business, very often the initial funds invested will come from the individual’s personal savings. The tendency of business start-ups to approach relatives and friends to help finance the venture is also a widespread practice. David can start from investing the finances available to him on person or borrowed from friends/ family. This can be the balance of his bank account or the use of his assets. The advantage will be the trust his gaining within the other financial providers by risking his own money.
Loans and Overdraft
Banks provide money to build money. Decisions on