BUSN 1101 Lecture Notes - Lecture 7: Venture Capital, Financial Statement, Financial Institution

• School: Northeastern University
• Department: Business Administration
• Course: BUSN 1101
• Professor: Vincent Muscolino

Document Summary

Because new businesses usually need to borrow money in order to get off the ground, good financial management is particularly important to start-ups. plan a document that performs two functions: 1 calculating the amount of funds that a company needs for a specified period. 2 detailing a strategy for getting those funds. You start by estimating your sales for your first year of operations. This is the most important estimate you"ll make: without a realistic sales estimate, you can"t accurately calculate equipment needs and other costs. To predict sales, you"ll need to estimate two figures: Its owners are the most important source of funds for any new business. Figuring that owners with substantial investments will work harder to make the enterprise succeed, lenders expect owners to put up a substantial amount of the start-up money. For many entrepreneurs, the next stop is family and friends.