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DISCOVERY

 It refers to finding business opportunity and conducting investigation to determine whether it should
be taken or not
o A business opportunity involves the sale or lease of any product, service, equipment and so
on that will enable the purchaser-licensee to begin a business.
 The primary purpose of the discovery phase is to fully understand the client's situation by examining
the area of the organization that needs the most attention and what kinds of attention it needs. By
collaborating with your client during this phase, you orient your client to accepting feedback about
the situation and also the recommendations for how it can be addressed.

FINANCING

 Financing is needed to start a business and ramp it up to profitability. There are several sources to
consider when looking for start-up financing. But first you need to consider how much money you need
and when you will need it.

 The financial needs of a business will vary according to the type and size of the business. For example,
processing businesses are usually capital intensive, requiring large amounts of capital. Retail businesses
usually require less capital.

 Debt and equity are the two major sources of financing.

Equity financing is the method of raising capital by selling company stock to investors. In return for the investment,
the shareholders receive ownership interests in the company.

 Equity financing means selling a piece of the company. One advantage to equity financing is that you
don't have to go into debt.

o Personal Savings
The first place to look for money is your own savings or equity. Personal resources can include
profit-sharing or early retirement funds, real estate equity loans, or cash value insurance policies.

Debt Financing involves borrowing funds from creditors with the stipulation of repaying the borrowed funds plus
interest at a specified future time. For the creditors (those lending the funds to the business), the reward for
providing the debt financing is the interest on the amount lent to the borrower.

 Debt financing (loans) may be short term or long term in their repayment schedules. Generally, short-
term debt is used to finance current activities such as operations while long-term debt is used to finance
assets such as buildings and equipment.

o Banks and Other Commercial Lenders


Banks and other commercial lenders are popular sources of business financing. Most lenders
require a solid business plan, positive track record, and plenty of collateral. These are usually
hard to come by for a start- up business. Once the business is underway and profit and loss
statements, cash flows budgets, and net worth statements are provided, the company may be
able to borrow additional funds.

3 Effective Ways to Utilize Your Working Capital Wisely


Everyone knows that it takes a huge capital to start a new business or expand an existing venture. By funding your
own business, you get to keep it going. However, it is never easy to obtain the money you need in order to run a
company or purchase everything you need to make it grow.

Once you get the capital for your business, you have to make sure to use it wisely. Since it is tough to borrow
money from financial firms, you need to make the most out of it. Moreover, as a business owner, you need to
maximize your money, increase productivity, as well as grow your financial capital to earn more. It won’t be easy
to fulfill these things right away, but you need to work hard to make these possible.

To keep your business off the ground and make the best use of your working capital, be sure to consider the
following helpful tips:

Determine the value of your capital

The first thing you need to do is to know how much capital you need to run your own business. You have to create
a business plan which includes your capital, expenses, and all the essential things to preserve cash flow. More so,
you have to determine if you’re investing on a short period or long term. Once you have calculated the value of the
capital needed for your venture, then you will be able to estimate the cash you’ll use for investments, service
updates, and equipment purchases.

Write your business plan

A strategic business plan helps you to set your goals straight. By creating one, you are making a nice impression to
your partners, lenders, and other entrepreneurs out there, for you already have a clear vision about your business.
In addition, a business plan makes you more prepared for the next steps you are going to take in your company.
You have a guide that directs you to the right path.

Estimate your cash spending

It is also crucial to calculate how much money you can afford to spend and your expected return on investment.
You need to have a keen eye on your spending because your profit relies on this one. Once you have the capital
needed for your business, you have to invest on software, tools, equipment, or the latest technology for your
company. However, you must budget your money properly before you can do that. As a business owner, think
about what makes your venture profitable. It is easy to purchase this and that, but you have to ensure first that
every expenditure benefits you.

All in all, a working capital is a vital factor in running your own company. There are numerous things you need to
consider prior to starting an enterprise, bet it big or small. Nevertheless, you can count on these useful tips
mentioned above to maximize the capital for your business. Once you are able to do these, you are sure to bring in
profit and value in your company, making it more successful than ever.

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