BUSINESS FINANCING Prof. Romziah Sidik, Ph.D. drh. 2010.

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Presentation transcript:

BUSINESS FINANCING Prof. Romziah Sidik, Ph.D. drh. 2010

How to Get a Good Investor Show an rational start capital need Show an tested product/services for advertisement Interested product/services Influenced to the investor Not to be a big problem with the product/services.

Strategy to Get a Good Investor To be confidence with the office Nameplate, location, building, infrastructure, facilities and type of product/services. Business capacity Predicted of profitability in short time to long time The sustainability of business.

Stage of Financing Business 1.Initial Financing Seed Capital: a low capital need for showing the objectivity the concepts and financial feasibility. Star-up: Development of product and initial marketing without commercially sold (just for business operational)

Stage of Financing Business 2. Financing Expanse or Development Second Stage: Initial capital without fixed profitability and un accountable. Third Stage: Expanse of business with faster growth of sold out the product/services. Fourth Stage: preparation for go public

3. Accusation Financing and Leveraged Buyouts Traditional Accusation: To get ownership and controlling to other business Leveraged Buyouts: Business management be controlled by other enterprise which is take over/ bought this business. Privatization: A few of ownership/managers take shares the business (Standing stock).

The Steps of New Business for Predicted cash flow To prepare the loss and profitable of business To prepare balance sheet cash flow of business To predict cash flow To predict balance To summarized of need and utilization of cash To prescribe total cash need for financing by investor.

Formula to Calculate the Percentage of Investor Ownership Current Values= The future estimation (1+i)n * The future estimation: for about 5 years. * i = Level of desired output * n = number of year

Formula to Calculate the Percentage of Investor Ownership Investor Shared = Level in the future Current Values