Forecasting and Venture Budgeting Paper
1. You can use cash in hand: Cash on hand is a good option if the venture already has a source of funding and does not plan to take on debt. This approach would involve keeping expenses low while relying solely on the founder’s own capital to get the business off the ground.
2. You can use debt: A small loan with a bank template loan or line of credit is a good option to help you fund your short-term goals, like hiring staff or purchasing equipment. Based on creditworthiness, the amount required and other factors founders might be eligible for lower interest rates than when they use equity financing.
3. Venture Capital: Seeking investments from external investors (e.g., angel investors and venture capitalists) can provide larger sums of capital but also gives away part ownership in exchange for these funds—providing flexibility during difficult times without sacrificing too much control over their company’s direction down the road.. Sometimes, these types of investments can be used to help with marketing strategies. This will allow new ventures to gain an edge over rivals who may not have the resources they need through their team members or network.
4. Combination Approach: A combination approach involves utilizing more than one method mentioned above based on urgency/time frame requirements associated with different business needs/activities – drawing both from cash reserves/debt as well as securing investments if necessary (where applicable). This combination approach allows businesses more flexibility in responding quickly to changing economic conditions that arise during launch phase; thus enabling them make informed decisions about which option best fits their respective risk tolerance level while staying within budget constraints at same time in order keep operations running smoothly between periods where there may not be fresh infusions of capital coming into business every month or quarter going forward once startup period is officially closed out – something potential lenders tend look favorably upon when evaluating start-ups seeking loan approvals.