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UNIT 12FINANCING PLAN - Coggle Diagram
UNIT 12FINANCING PLAN
Securing Financing for a New Venture
identifying
obtaining the necessary financial resources
to cover startup costs, operational expenses, and growth initiatives.
Internal Sources of Securing Funds
Personal Contribution
Demonstrates commitment to potential investors or
lenders
No interest or repayment requirements
Complete control over the funds
Business Funds
Keeps funding within the business ecosystem
No need to incur debt or dilute ownership
Funds from Family and Friends
Flexible terms and minimal formalities.
Often lower expectations for immediate returns.
External Sources of Securing Funds
Equity Financing
No repayment obligations.
Access to investors’ networks and expertise
Venture Capital
Large sums of capital available.
Access to strategic guidance and industry expertise.
Debt Financing
Maintains ownership and control of the business.
Predictable repayment terms.
Equipment Leasing
Lower upfront costs compared to buying.
Allows access to the latest technology without significant capital investment.