Examining Capital Resources Assignment

 

 

Complete this assignment to demonstrate your ability to create a financial road map.

You are meeting with your two partners to discuss and plan the financial road map for your business. Review the following article:

Lau, Geok Theng, and Hsueh Wei Chin. “Trustworthiness of Salespeople in the Business-to-Business Market: The Five C’s ” Journal of Business-to-Business Marketing 10.3 (2003): 1-33. Retrieved from: https://arizona-nau-primo.hosted.exlibrisgroup.com/permalink/f/6udtj4/TN_tayfranc10.1300/J033v10n03_01

Based on the stage you are at with your business, analyze, in a 400-word paper, what finance options you have. Incorporate the Five Cs into your analysis.

Deliverable: A 400–word paper that includes at least one citation/reference to a source from this lesson. Assignments should have a clear introduction, thesis statement and conclusion, written in APA format (https://owl.english.purdue.edu/owl/).

Step 1: Review funding (finance) options.
Review notes from the lesson’s activities; begin documenting your options.

Step 2: Identify the venture capital stage.
Review notes from the lesson’s activities; document what stage you feel you are at.

Step 3: Review the Five Cs checklist.
Review notes from lessons activities; document your business status with each of the Five Cs.

Step 4: Write the Financial Road Map paper.
Write a 400-word paper describing your financial road map.

Use these writing guidelines:

· Include a cover page and references in addition to your required word count.

· Use correct APA format

· Double-space text

· Use size 12 Times New Roman

· Use section headings to organize

· Indent paragraphs

· Include in-text citations

· Use correct spelling, grammar, sentence structure and verb tense

Financial Roadmap

Financing is a complex and integrated process that follows a series of steps to establish the best suitable capital resources for a business. Investors classify funding options based on the business growth potential and performance track record in terms of profit. Through comprehensive analysis and evaluation of the business venture strengths and weaknesses, an entrepreneur can draw the financial map of a venture.

A business undergoes through various stages during its lifecycle. An entrepreneur can choose to start a business from the ground up or buy an existing business and build it to increase profits.  When an entrepreneur starts a business from scratch, it is called a startup. During the early stages of a startup business, the best suitable financing option is the Angel investment. This funding option offers numerous investment funds at reasonable and affordable terms that facilitate a conducive environment for growth.  Furthermore, an angel investor provides valuable advice that helps in the running and operation of the business as startup businesses face a lot of challenges as they are relatively new in the market.

Traditionally angel investors believe that starts up entrepreneurs has grandiose, credible and innovative ideas that need to commercialize to solve current and emerging problems. Through this, an angel investor will collaboratively work with the entrepreneur to offer comprehensive and data-driven solutions to ensure the business grows. Most of the time angel investors chose a company that aligns with their values and has the potential to grow with a little track record

During the financing process, it is crucial to analyze and evaluate the credibility and eligibility of a financing option. While the majorities are authentic and follow the duly process of investing, some of the financing options are not viable and may bring about enormous problems in the future. The first step in reviewing the financing options is evaluating the level of commitment the investor has on the business (Kimberly, 2020). Ideally, for any investment to be fruitful, an angel investor must be willing to commit time and effort in the industry to ensure that his/her resources are used for the right purposes.  Secondly, the financing process should be guided and initiated by a professional and competent team. The team should be conversant with the industry the business operates in and have the ability to project the scope of the investment.

Thirdly the angel investor should be certain and have a sense of conviction before investing in the business venture. There should be formal writing to prove the surety of investing in the business. This is important to avoid pulling out when the investment is halfway or when the company is undergoing turbulent times and cannot survive if the investor pulls out.  The financial roadmap should be based on greater shareholder involvement to form a stable working relationship that will oversee the running and operation of a business (Geok & Hsueh, 2003).  Next, in line, an entrepreneur will review the willingness of the investor to venture into this type of business.  The entrepreneur will provide all the necessary documentation and information regarding the company to the investor to give him/her a platform to evaluate the pros and cons of the venture.

Finally, the entrepreneur will analyze the features of the investment package to discern the benefits as well as the risks. It is of paramount importance to understand the willingness of the buyer to risk or no risk. Furthermore, the entrepreneur should review the contractual structure or arrangement. This financial roadmap is the beginning of the detailed process for a startup business in the early stages of formation

References

Geok, L. T., & Hsueh, C. W. (2003). rustworthiness of Salespeople in the Business-to-Business Market: The Five C’s. Journal of Business-to-Business Marketing . Retrieved from Journal of Business-to-Business Marketing :  https://arizona-nau-primo.hosted.exlibrisgroup.com/permalink/f/6udtj4/TN_tayfranc10.1300/J033v10n03_01

Kimberly, R. (2020). Venture Capital: Investing in Early-Stage Startups. Retrieved from Columbia Business School: Venture Capital: Investing in Early-Stage Startups

 

 

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