Assignment 4: Final Business Plan

NAME

INSTRUCTOR

STARTUP FUNDS

August 15, 2019

Startup funds refer to the money required to start a business. It is the initial money that is pumped into business as capital to start operations. The startup funds could come from outside investors or banks as loans (Jeng et al, 2014). Outside investors might, however, ask for a stake in the business. They might also come to one's savings and/or government grants. Startup funds cover costs such as supplies, rent deposit or purchasing of buildings and initial supplies.

Working capital refers to the capital used in the daily operations of a business. Also referred to as the networking capital, the working capital is a difference between the current assets and the current liabilities. Current assets of a business include cash, accounts receivables, and the products while current liabilities are the accounts payable and taxes (Davila et al, 2013). Working capital measures the liquidity of a business and its operational efficiency. Business with sufficient working capital can expand. Both current assets and liabilities are only available in twelve months.

In my cleaning services business, I intend to use my savings to start the business. I am also planning to go for a bank loan to ensure that have sufficient startup funds. I will use my savings to take more loans from the bank. I am also planning to ask for a loan from my parent. However, the business will be mine and they will not be having equity in it. I will also look for a government program to help me receive government grants or subsidies for my business.

REFERENCES

Davila et al (2013). Venture capital financing and the growth of startup firms. Journal of business venturing, 18(6), 689-708.

Jeng et al (2014). The determinants of venture capital funding: evidence across countries. Journal of Corporate Finance, 6(3), 241-289.