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Raising Capital At Some Stage

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In business, companies will always have to raise capital at some stage either because a company needs start-up capital or needs capital to expand. This is an important part of the financial planning structure for businesses because they all require an initial investment to meet their requirements. The majority of people automatically think Initial Public Offering (IPO) when they hear of a company raising capital. It is the basic procedure for a company to make it publicly known that they are selling their securities. In reality, raising capital can be done in many ways, which include loans, leasing and getting investors, which are all classified as small-scale ways of raising capital. Larger ways of raising capital are attracting angel investors, venture capitalists and offering equity. Starting a business without a steady income and constant lessening of whatever savings you may have is one of the most difficult circumstances to be under. For my own business I have used my savings and personal credit, which unfortunately is a limited supply of money. The need for capital never ends and that is why considering your market need, potential competition, risk & return and sources of potential funding are essential to look at before making any decision involving raising capital.
Identifying the market need through market research is vital to consider as it explores and recognizes the most penetrable and fastest growing market for your service or product. When considering your
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