Raising daadaddadadadadadadanance (2).ppt

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1. RAISING FINANCE
in other words, raising capital, raising
moneyor raising funds

2. You can provide money for your business in a
number of ways:
■Saving money from your earnings in another company;
■Getting inheritance;
■Borrowing money from other people, who are not your business
partners (a member of your family, a friend or colleague);
■Entering a partnership;
■Issuing shares;
■Finding a venture capitalist;
■Contacting a loan shark;
■Taking aloanin a bank.

3. All lenders could be divided into two groups:
■those who provide money
■equity investors
To get a personal loan you would probably need to
offer a bank:
■an explanation of what you want the money for;
■a recent bank statement;
■some form of ID, for example, a passport;
■an indication of how you intend to pay the money back.

4. To get a business loan you usually need to offer
a bank:
■a business plan;
■recent financial statements;
■a repayment plan;
■collateral, or security.
A lender might consider the following range of pledges:
■real estate (for example, house, apartment, business premises);
■hard goods (such as business equipment);
■stocks and shares in the company;
■personal assets;
■personal guarantee.

5. Depending on the terms on which the loan is taken
there are three types of loans:
■Short-term loans(These loans are typically provided by clearing
banks);
■Intermediate-term loans;
■Long-term loans (including commercial mortgages)
When getting a loan a lender and a borrower must
also agree on the following points:
■interest rates (are they competitive and favorable for both
sides);
■the way of repayment (in one lump sum or by instalments at set
time);
■the date of the repayment (including the date of the final
repayment).

6. A successful negotiator may use some of the
following techniques:
■open questions (used in order to gather information and
explore the opposite number’s views);
■closed questions (used to check understanding and ask for
precise information);
■softening phrases (used to modify language so that it doesn’t
appear too aggressive);
■signaling phrases (used to say what you are going to do before
you do it);
■summarising (used to go over the points covered to highlight
when agreement is reached).

7. Negotiations can lead to three possible
outcomes
Win-win solution
(when both sides
are satisfied
because they
succeeded in
realising the other
party's needs and
made steps towards
each other)
Lose-lose solution
(when both sides are
dissatisfied with the
achieved results)
Win-lose
solution
(when only one
side has got
satisfaction
from the
outcome of
negotiations)

8. Establishing start-ups
A typical business plan usually consists of the following
sections:
■details of the business (name of business, type of business –limited
company, partnership etc.);
■personal details (relevant work experience);
■personnel (number of people, job function);
■product/ service (description);
■market (describe your market);
■marketing (How are you going to advertise the product or service?);
■premises/ machinery/ vehicles (Where do you intend to locate the business
and why? What sort and size of premises will you need? What machinery/
vehicles do you require?);
■objectives (What are the business’s objectives?).