• How to improve chances of securing the desired funding?
• Funding options and the different stages of business life
A typical business goes through 4 stages in its life cycle, i.e.
- infancy (start-up)
- growth
- maturity
- decline
At different stage, the options available for funding vary. In general, the common sources of funding are:-
Internal sources:-
- share capital
- retained profits
- directors advances
- shareholders' injection
External sources:-
- friends / family
- suppliers support
- customers payment
- government grants & incentives
- bank borrowings
- private debt securities / bond
- venture capital & private equity
- stock market
It is important for a growing business to explore the more viable and cost effective option at its different stage in business cycle.
• Funding for start-ups
|
