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Managing Financial Resources And Decisions Business Essay

Typically, entrepreneurs are powerful and enthusiastic about their ideas. To be a successful entrepreneur, you will need good ideas to fulfil a demand. Every businessman must think about money. For the business there are a few sources of funding for budding business owners. Probably less financial risk in making start-up money from relatives and buddies, than in borrowing from a institute - so have look first to prospects sources of finance.

Task 1

A Gardening Service can be considered a good notion for small company of an entrepreneur. For this small business money can be personal personal savings, friends and family, grants etc.

If any person uses their personal savings to purchase business, then the source of financing comes under the heading of personal savings. Most of business owner funded with personal cost savings.

Friends and Family is next fund to start-up business. Nobody wants to get involved with a start-up company. However in case of relatives and buddies, easy to collect and hassle free. Funds can be collected by relatives and buddies below 5000.

Then my third money for gardening service will be Credit Card. this card with pre-loaded cash given by bank. For that people have to pay interest. By visa or mastercard fund can end up like 5000.

Among these money, relatives and buddies will be best for the gardening service. Because you can collect, it can be big amount for small company, convenient, and easy to start-up for just about any deal.

Producing musical feeding couch for babies

Babies like appeal. A musical chair will be good appeal for most infants. Lots of funds need to begin of the business. From that I decide three source of money- Overdrafts, Personal cost savings, and Friends and family.

Overdrafts can be used in small business. Lender provides overdrafts on customers demand.

Overdrafts are secured funds for business provide by lender. An interest has to pay yearly. Business owner can use it any times. So overdrafts can be the good way to obtain finance for this business.

Selling customised t-shirt, mugs and other novelty items online

People like to shop at online to save their time. EASILY start offering customised t-shirt, mugs and other novelty items online, like other business entrepreneurs I have to select source of funds. Funds are Angel Entrepreneur, Personal Savings, and Overdrafts.

Persons who invest in various companies at pre-mature stage to make income and the chance to guide the company call Angel traders. In compare, company capitalist spend as a profession and generally on behalf of other shareholders. Angels typically spend their own cash. The investment from these angels can be from $150, 000 to about $1. 5 million dollars.

These angels are usually enterprisers who want to help out appealing entrepreneurs with the own businesses. For all those reason I love to rising cash by angel investor.

Starting a financial consultancy

A financial consultant known as financial advisor, they feature advice about money management. A lot of people come to financial consultancy firm for guidance on how to reach their long-term financial goals. To open and run these business three cash can be chosen. .

Factoring is where the financial association advances the business owner cash against income from the entrepreneur's fantastic amount. Factoring is a company, usually are paid a proportion of the invoice's value.

Factoring is suitable for this business. Because, this can be an institute, they provide cash quickly.

Running Bed & Breakfast

For this business as a business owner I can invest by debt funding, relatives and buddies and personal savings.

The majority of new smaller businesses are funded with Arrears Funding via institutes. Bankers will provide with a loan or credit line that is included with repayment agenda and mortgage loan. Loan can be provided by type of business and demand of entrepreneur. For opening of the business enterprise debt financing could be best source for money.

For this business prefer to funded with personal debt financing. Because need not give up equity, easy to get loan, maximum banking companies are giving low interest rate. So debt funding is best source of cash for the business enterprise of Foundation & Breakfast time.

Task 2

Personal savings


No equity-holders to pay.

Best way to sue cost savings.

Do not want to acquire.

No monthly payment.


Funds will be limited.

May face a great deal of personal personal debt.

May miss out on earning interest.

Friends and Family


Funds are available quickly.

May do not pay any interest.


Limited funding.

One time funding.

May need to pay interest.

Risk of relation if business will not success.

Credit Card


Low interest rate.

Bank will provide that.

This is acquired funding.


Limited amount.

Have to pay interest.



Sometimes not need to pay interest.

Can be used any time.

Can by refund any time


Need to pay interest.

Have to use for the.

Amounts are limited.

Angel investors


Angels spend more than money.

Provide mentoring and associates.

No monthly payments.


Angels are difficult to find.

Take up valuable time.

Giving up collateral in your small business.



Provides money quickly.

Helps companies with a rickety and unpredictable cash flow.


Increased accounting oversight and administration.

Cost of money is involved in factoring.

Debt Financing


You create a powerful romantic relationship with banker.

Don't have to stop equity.


May be asked to provide personal guarantee.

Have to pay interest.

Task 3

Cost assessment of the sources

Cost means the total amount to be payed for anything bought. Using those options will need to have to determined cost.

A Gardening Service

Personal savings is best for invest in business among other resources. The cost is suprisingly low here, only opportunity cost. Cost of Friends and Family also low. But sometimes business owner need to pay interest. For the using BANK CARD can be costly. Because bank charge for it. Different lender have different insurance plan to fee for amount.

Producing musical feeding seat for babies

In this business I used overdrafts, personal cost savings, and friends and family. Here overdrafts have interest cost. However in other two cash no interest cost.

Selling customised t-shirt, mugs and other novelty items online

Funds are Angel Buyer, Personal Cost savings, and Overdrafts for this business. Angel investors very costly to fund, but they commit a great deal. Those investor will need money after invest. For personal keeping don't need to repay and in overdrafts have to pay interest.

Starting a financial consultancy

Invested money are factoring, personal savings and visa or mastercard. An considerable cost of money is involved with factoring and mastercard. For spending personal cost savings only cost is 'opportunity cost'.

Running Foundation & Breakfast

I invested debts financing, friends and family and personal personal savings in running bed & breakfast time business. In the Debt Financing lots of interest must pay to the financial institute. Like interest, security deposit etc, for the personal savings and friends and family no need any first deposit. But in friends and family sometime need to pay interest

Task 4

As a budding entrepreneur I'll go for reselling customised t-shirt, mugs and other novelty items online. Because now people prefer to buy novelty items form online to save lots of time and money. Now a day's online selling is going more competitive and challenging. As an entrepreneur I love to take challenging jobs. On the other hand selecting way to obtain cash are easy and an adequate amount can be gathered.


In this business world everything is certainly going extremely fast so opening a new business is very challenging. Account collection is one of the main facts in business. Money can be accumulated from different resources. But a business owner must have to choose right money for the right business. Then there may be less chance to fail.

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