| Capital is normally required for three
| |
| | to increase the plant size to keep up
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| possible applications, namely:1. Fixed
| |
| | with the huge demand.Just a final note on
|
| Capital:Fixed capital refers to your
| |
| | equity financing, in general there are
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| business needs to buy fixed assets. This
| |
| | two main sources of funding for a
|
| means that you need the capital to buy
| |
| | business namely debt and equity
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| things like buildings, machines,
| |
| | financing. The main difference between
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| computers, vehicles and furniture. These
| |
| | the two is that with debt financing the
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| items are normally purchased for use in
| |
| | lender does not acquire ownership or any
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| the business and not for resale. The
| |
| | say in the day to day running of the
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| purpose is to generate sales. They do not
| |
| | business. However, the cost of such a
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| have a resale value and can be liquidated
| |
| | benefit is interest that you must pay on
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| again, but in most instances lose value
| |
| | the amount borrowed. Equity financing
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| over time. This is called depreciation.
| |
| | does not normally involve any costs such
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| Depreciation is seen as an expense and is
| |
| | as interest but you might have to
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| recorded in the income statement. Land is
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| | sacrifice a certain percentage share in
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| the only item that does not depreciate.
| |
| | ownership.Forms of equity financing:1.
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| Fixed assets on the other hand are
| |
| | Personal fundsIt is the most common
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| recorded in the balance sheet. When
| |
| | source of funding a business. It comes
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| planning your business you must determine
| |
| | either from personal savings or a
|
| how much you will need for fixed assets.
| |
| | re-mortgage on a house.2. Friends and
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| This capital will then be fixed and will
| |
| | relatives:As the name suggests, this form
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| not be available to for something else.
| |
| | of financing is derived from the support
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| Note that there is generally a cost
| |
| | of friends and family. People who know
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| linked in obtaining such capital. This
| |
| | you and trust your business concept.
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| will limit the amount that you can
| |
| | However there are potential pitfalls,
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| justify. careful planning of your fixed
| |
| | money, friends, family and an
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| asset requirements is therefore
| |
| | unsuccessful business do not go hand in
|
| necessary.2. Working Capital:Apart from
| |
| | hand.3. Equity shares:This form of
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| buying assets for your business, you will
| |
| | financing normally refers to partnerships
|
| need cash to run your business. Capital
| |
| | and closed corporations. This option
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| that will work for you and generate a
| |
| | provides an opportunity to get hold of
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| profit. Working capital is used to buy
| |
| | additional capital for the business by
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| items like raw materials, paying wages
| |
| | accepting a partner or a member who
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| and electricity. Since you wont have have
| |
| | possesses the financial means, but
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| an unlimited amount of money available
| |
| | usually means a sacrifice in percentage
|
| and sales income is not always
| |
| | ownership. where you will find Global
|
| sufficient, planning your money supply is
| |
| | solutions and ideas.
|
| very important. To know how much money
| |
| | Turtle Herb Estate Holdings consists of
|
| you are going to need and at what stages,
| |
| | 3 forward thinking entrepreneurs with
|
| you will have to compile a cash flow
| |
| | expertise in marketing & DTP advertising,
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| statement. Remember working capital is
| |
| | farming culinary and medicinal herbs, web
|
| not profit, it is money needed to
| |
| | design and online marketing, horse
|
| generate profit in the long term.3.
| |
| | breeding (sport horses),animal health
|
| Growth Capital:Growth capital surfaces
| |
| | products, import and export, engineering
|
| when an existing business expands or
| |
| | and industrial design (water solutions),
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| changes it direction. For example, a
| |
| | arts and crafts. With a combined wealth
|
| small manufacturer of TV cabinets sees
| |
| | of 80 years experience in various lines
|
| his business skyrocket in a short time
| |
| | of business, we embrace a holistic
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| period. With orders streaming in , the
| |
| | approach to entrepreneurship.
|
| business needs a sizeable cash infusion
| |
| |
|
