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 You have decided on your target market and have determined your market share.  Now you can determine your financial goal by basically multiplying units.

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Presentation on theme: " You have decided on your target market and have determined your market share.  Now you can determine your financial goal by basically multiplying units."— Presentation transcript:

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2  You have decided on your target market and have determined your market share.  Now you can determine your financial goal by basically multiplying units by share of the market (customers)  You also had to determine your start-up costs. What do you require by way of infrastructure?  Where will the money come from?

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4  Personal Savings  Friends and Family  Debt Financing  Government Agencies (ACOA)  Partnerships (Gourmet Burgers)  Angel Capital  Equity Financing (Dragons Den)  Venture Capitalists

5  Using personal savings can be a huge sacrifice, but conveys a high level of confidence in the business.  Personal savings allow the owner to remain in control of profits and decision making.

6 “Angel Investors” are typically entrepreneurs themselves. They differ from venture capitalists in that they are investing their own hard-earned money into your company rather than that of institutional investors. They typically invest upwards of $25,000 all the way to $500,000.

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8  Similar to Angel Investors but VCs are private companies or owners even banking/financial companies.  VCs can ask for 25% return or even more.  VCs will want a detailed plan, involve their own financial advisors, but bring good advise and planning.

9  ‘love Money” can be a great source because these people most likely believe in the venture and can give flexible debt repayment.  Positional disadvantage is hurt and strain in the venture fails.  (share holders agreements help, as well as regular reporting)

10  2 or more form partnerships. Each may contribute finances.  A written agreement will be essential for all involved.  Partnerships often receive higher credit ratings if more capital is needed.

11  Money borrowed to finance the venture.  Whether for start up, improvements, or to finance growth. Money paid back over time.  This is money from institutions like banks, shop for lowest rate.  Best rates go to those with highest debt to equity ratio

12  ACOA lend money to venture plans because these have the potential to create jobs, develop new technologies, help the country compete in the foreign markets.  Money, advice and “matchmaking services”

13  The secret to startup success is not to tap into the best source of capital, but rather to tap into every source of capital. Michael Dell  Which sources best fit the needs of your business plan?


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