Venture Capital Funds For Entrepreneurs And Small Businesses

Venture capital is a fund raised by a group of wealthy investors, which is then made available to small companies and startup firms. These small businesses and potential entrepreneurs usually have excellent growth potential but lack the funds to proceed. Because there’s a chance that the business may not do well at all, venture capital is also known as risk capital.

So how does venture capital work? It’s not as difficult as it sounds. A start up business will solicit funds from a venture capital firm. If everything goes well, the venture capital firm will invest a certain amount of money into the start up, drawing on it’s capital over several years. When the fledgling firm exits,” (meaning the business is purchased or goes public), the investment is returned to the venture capital firm’s investors, with a percentage of the profits thrown in for good measure.

How does one find a venture capital firm? One way is through a trusted financial expert such as an attorney, financial advisor, stockbroker or accountant. With luck, one of these professionals will recommend you and your business to a venture capital firm. Be sure to do your research first. The library and Internet host a wealth of information and there are many books available on the subject. You’ll need to know what steps are necessary to put in place before seeking out venture capital. For instance, a business plan and executive summary are necessary in order to convince any venture capitalist to invest in your idea.

A typical venture capital firm may invest in perhaps one out of four hundred businesses that are seeking their assistance. After losing money in the dot com boom of the nineties, many firms have become quite selective. If you wish for one of these firms to make an investment in you, you must be convincing and have great negotiation skills. Your business or product may be fabulous, but if you don’t have the ability to sell it, it’s not going to bring in any investors.

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Bank Of America Online

The Bank of America Online Banking service is from the largest holding bank in the United States by assets and the second largest by market capitalization. This bank provides services in 150 different countries around the world and has a financial relationship with 99% of the US fortune 500 companies.

With the vast resources this financial institution has, they have one of the most secure networks in the business for their clients to use. This is one of the reasons this bank’s online service is so well respected and trusted. This service is advertised as free, easy and secure.

The online service allows access to customers for the easiest and fastest way to review current and past transaction from any account they may have with Bank of America. The present and past 12 months of statements are available 24/7.

If there is a need to transfer money between your different Bank of America accounts, this can be done instantly. There is also online bill paying with this online service. Any size payment can be made to anyone or any company in the world.

The online services allow customers to manage their money in one convenient site that is guaranteed to be safe. This is all a part of the online banking guarantee of customers to be $0 liable for any unauthorized transactions from any of the online services.

For security there are two award winning internet banking features available to all customers. These are the SafePass and SiteKey.

When needing bank rates it is possible to get the latest rates available form this great bank. When it comes to internet banking there is no safer or convenient service to use than the Bank of America Online service.

To get the latest and most accurate data possible from the home sites of the financial institutions please visit – You can get all of these great articles and more are posted there.

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Financial Factors From Luxury To Necessities:

If I say money is all we need to fulfill needs would be not wrong because if we see our surroundings everything we can get if we have money. From basic necessities to luxuries money can provide the facilities to get everything. People are trying their best efforts to increase their weekly or monthly incomes and some people do over work to increase their monthly finance ratio.

The inflation rate has increased from past two three years and purchasing power of single person is getting lower everyday. So to earn more money is all we need to manage our home finance and requirements. But necessities are not only requirements for humans. When a person fulfills his everyday basic needs he moves towards extra things and luxuries and when he is able to fulfill his luxuries he option for more opportunities to get everything. And this is what about Maslow theory is based on. With the increase in purchasing power, the human demands related to finance increases. Bu it is natural and everyone living on this planet lies under the concepts written in Maslow’s theory.

It is totally wrong to say that human gets satisfaction if they are able to achieve one target but the greed and lust for earning more money to overcome finance requirements are always incrementing. However, some persons are greedier and some are less. The ratios are different but no one wants to vain the possibilities of earning more.

We can see with our own eyes the progress of world and if we particularly talk about mobile phones, you are able to determine the difference in use of mobile phone in past ten years. Now they are very common and converted to necessity from luxury. So it is due to change in time that the worth of money is getting down and people are willing to buy more. It is no doubt change in finance issues and research and surveys are proving that more luxuries are converting into necessities.

Computers are another example especially laptops and if we go back thirty years the cars were used as a luxury but now it is necessity for all people. So these are basic changes by time affecting the issues related to finance because everyone wants to enjoy the comfort of life and for this reason they try to earn more money to fulfill their needs and when we talk about money then financial institutions are always at top.

These financial institutions are providing help to people to meet their monetary requirements at best level and the best financial institutions are banks that have solution of almost all types of finance issues. People are connecting their money problems with them to get the approximate completion of money requirements.

So it is all the matter of desires that are increasing day by day with the increase in facilities of life that money is loosing its power but demand of money is increasing very fast. May be we are able to find out base of this problem but still no economist has provided a proper solution to deal with such a confusing situation.

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The Little Secret About Loans That Can Turn Your Small Business To Mega One

Loan is the way of raising or sourcing money to expand your existing or new business. Getting loans to fund a business is very important, especially if you don’t have adequate capital to finance your enterprise. Some financial institutions are very much ready to finance your trade, but you must meet up various conditions. The requirement could be inform of your available collateral whether fixed assets, real property investment, share and bond certificates, mutual fund benefit, life assurance policy, landed property.

When your collateral is up to date, you can now approach the bank for loans. The bank representatives usually visit your business premises to access the facility on ground. This will help the official to ascertain your level of competence as whether you can manage the available resources and the cash if release to you. The bankers will demand for your detailed feasibility study or business plan.

The business plan must contain the amount of funds needed to run or expand the business ventures. Your savings, if available, should be stated and the amount you can borrow from your associates, friends and relatives. You must disclose whether or not you received loans from any other banks.

Tell the lender the amount you plan to introduce into the ventures. The feasibility study should include sales forecast, market analysis, price audit, cash flow analysis, business and environmental projections. Projected trading, profit and loss and balance sheet can be submitted to bank for approval of your soft loan. When all these conditions are met, then you will smile to banking hall to collect your loan package and before you know, your business will start booming.

To end with, your proposal or business plan must show the total sum of loan, when the money is required, the sector you plan to invest the money, date and time of loan repayment and details of your collateral. You can get loans from the bank, associates, friends or relatives. Ensure to prepare an all-inclusive business plan to proof the business has the ability to make the required money from daily sales and has the capacity to repay the loan at the date stipulated on terms and conditions in the loan.

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Working Capital Management

Financial management decisions are divided into the management of assets (investments) and liabilities (sources of financing), in the long-term and the short-term. It is common knowledge that a firm’s value cannot be maximized in the long run unless it survives the short run. Firms fail most often because they are unable to meet their working capital needs; consequently, sound working capital management is a requisite for firm survival.

About 60 percent of a financial manager’s time is devoted to working capital management, and many of the potential employees in finance-related fields will find out that their first assignment on the job will involve working capital. For these reasons, working capital policy and management is an essential topic of study. In many text books working capital refers to current assets, and net working capital is defined as current assets minus current liabilities. Working capital policy refers to decisions relating to the level of current assets and the way they are financed, while working capital management refers to all those decisions and activities a firm undertakes in order to manage efficiently the elements of current assets.

The term working capital originated with the old Yankee peddler, who would load up his wagon with goods and then go off on his route to peddle his wares. The merchandise was called working capital because it was what he actually sold, or “turned over”, to produce his profits. The wagon and horse were his fixed assets. He generally owned the horse and wagon, so they were financed with “equity” capital, but he borrowed the funds to buy the merchandise. These borrowings were called working capital loans, and they had to be repaid after each trip to demonstrate to the bank that the credit was sound. If the peddler was able to repay the loan, then the bank would issue another loan, and these were sound banking practices. The days of the Yankee peddler have long since pasted, but the importance of working capital remains. Current asset management and short-term financing are still the two basic elements of working capital and a daily headache for the financial managers.

Working capital, sometimes called gross working capital, simply refers to the firm’s total current assets (the short-term ones), cash, marketable securities, accounts receivable, and inventory. While long-term financial analysis primarily concerns strategic planning, working capital management deals with day-to-day operations. By making sure that production lines do not stop due to lack of raw materials, that inventories do not build up because production continues unchanged when sales dip, that customers pay on time and that enough cash is on hand to make payments when they are due. Obviously without good working capital management, no firm can be efficient and profitable.

Statements about the flexibility, cost, and riskiness of short-term debt versus long-term debt depend, to a large extent, on the type of short-term credit that actually is used. Short-term credit is defined as any liability originally scheduled for payment within one year. There are numerous sources of short-term funds, such as accruals, accounts payable (trade credit), bank loans, and commercial paper. The major elements of current liabilities are trade creditors and bank overdrafts, and these are further analyzed.

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