Got a tricky question? Receive an answer from students like you! Try us!

Business Plan Solutions - Essay Example

Only on StudentShare
Pages 2 (502 words)


In funding her start-up small business, Rhoda Allegro could not hope to get equity financing from stockholders. Small businesses are usually financed by the pockets of their owners. However, in Rhoda Allegro's case she cannot hope to generate the required amount utilizing her savings in her account…

Extract of sample
Business Plan Solutions

The music retail store can also be funded by informal investors like family, friends, relatives, employees, or colleagues if they are willing to chip-in some of their available money. This possibility of course, is positively related to their support to Rhoda's business venture.
More formal sources of equity will be angel investors and venture capitalists. Angel investors are usually affluent individuals who provide capital to small start-up businesses. These individuals often hope for high returns on their investments (Ward, 2000).
Rhoda Allegro can also seek equity financing from venture capitalists. Venture capitalists are also individual who supplies capital for the start-up or expansion of a business venture. Like angel investors, venture capitalists are looking for higher returns on their investments than traditional investments. The main difference between angel investors and venture capitalists is that the former is usually equipped with skills in managing a business while the latter is a professional investor. An angel investor is often interested in adding value to the company aside from profiting from his/her investments (Ward, 2000).
In summary, Rhoda Allegro's business can be financed by formal and informal sources of financing. ...
Download paper
Not exactly what you need?

Related Essays

GAP Business Plan
SMA_RT operates one step beyond security products designed to prevent access to intruders. Once the security is breached, an intruder can cause significant damage and huge financial loss in a very short period of time. The SMA_RT solution is to thwart the intruder before he has the opportunity to create havoc.…
15 pages (3765 words)
Global Consultants Business Plan
Businesses must also not disregard cultural concerns. They should set up specialists to ensure that their business' giveaways or advertisements do not go against any cultural norms. Businesses should also be adaptable regarding the advertising arrangement. For instance, Italy and Hong Kong set restrictions on cash prizes, while current policies in Canada have challenged the ability to organize a skill competition with a prerequisite purchase. There are usually simple workarounds like offering an alternative means of entry or prize. Businesses should also be ready to run the campaign structure…
12 pages (3012 words)
Ecommerce web development business plan
Our offerings will be competitively priced in relation to other major consulting organizations who also offer high-end expertise. Our projected sales revenue estimates are $159,000 at Year 1 and $289,000 at Year 3. Profit is estimated at $65,000 by year 3 with a net profit margin of 6%. These figures factor in 130,000 of current debt with a further $50,000 in long term debt. This strategy will forestall any cash flow problems in the first 3 years of operation. Woodville Consultancy has already attracted $50,000 of start-up capital.…
15 pages (3765 words)
Business Plan Research Proposal
The modern concept of marketing holds that the key task of organization is to determine the needs wants and values of the customers and to adopt the organization to delivering the desired satisfaction more effectively and efficiently than its competitors. There are two key elements in this concept.…
Strategic Business Plan
Having started in the year 1988, this company started out as a small unit with four tailors and has now gone ahead to become one of the most prestigious names in interior decoration in the state of Orissa.…
12 pages (3012 words)