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Financing Options: "Newbe" Expanding Business - Research Paper Example
Author : runolfsdottirjo
Finance & Accounting
Pages 8 (2008 words)
Financing Options Name Institution Lecturer Course Date Prime Financial Consultants, Ainsdale Cresent, Middlesex. May 1, 2012. Newbe Enterprises, Fifth Street, Rochester, New York. Dear Sir, RE: Financing Options I am hereby writing in response to your concern regarding the best financing option you should pursue to facilitate taking your business to the mass market…
Finally, I have recommended the best financing options you should consider. Financing Requirements Before embarking on the types of financing that should be considered, it is worth noting something on financing requirements. The entrepreneur (or business management) should determine the amount of financing that is required to carry out the intended activities (going mass market), which is necessary in planning and execution of business operations properly (Gutterman, 1994, p. 2). Presumably, Newbe had determined the amount of capital required at the initial stages of the business formation. However, it is exceedingly crucial to review initial estimates periodically owing to the fact that the scope of business activities often change with time. Further, periodic review of the initial financing (capital) estimates enables businesses to cater for unforeseen factors, such as abrupt changes in the cost of raw materials. Business financing requirements and resources for securing the required capital depend on the size of the business under consideration and the industry (line of business) in which the business under consideration is operating (Gutterman, 1994, p. 2). ...