Class Notes (836,148)
Canada (509,657)
Accounting (213)
ACCT 2220 (69)
Lecture

Business

2 Pages
74 Views
Unlock Document

Department
Accounting
Course
ACCT 2220
Professor
Scott Brandon
Semester
Fall

Description
Often the hardest part of starting a business is raising the money to get going. The entrepreneur might have a great idea and clear idea of how to turn it into a successful business. However, if sufficient finance can’t be raised, it is unlikely that the business will get off the ground. Raising finance for start-up requires careful planning. The entrepreneur needs to decide:  How much finance is required?  When and how long the finance is needed for?  What security (if any) can be provided?  Whether the entrepreneur is prepared to give up some control (ownership) of the start-up in return for investment? The finance needs of a start-up should take account of these key areas:  Set-up costs (the costs that are incurred before the business starts to trade)  Starting investment in capacity (the fixed assets that the business needs before it can begin to trade)  Working capital (the stocks needed by the business –e.g. r raw materials + allowance for amounts that will be owed by customers once sales begin)  Growth and development (e.g. extra investment in capacity) One way of categorising the sources of finance for a start-up is to divide them into sources which are from within the business (internal) and from outside providers (external). Internal sources The main internal sources of finance for a start-up are as follows: Personal sources These are the most important
More Less

Related notes for ACCT 2220

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit