In the beginning of a business, and over time, you may need to borrow money for

Question

In the beginning of a business, and over time, you may need to borrow money for a short time (revolving credit or short term loans), or a long time (a mortgage, or an equipment loan, for example).

Given your profit and loss projection from last week, do you anticipate needing to borrow money for any reason? Keep in mind the seasonality of your company. You might make a lot of money in the winter, and have essentially no business in the summer — think of how that is true for a ski resort, for example.

If you foresee having to use someone else’s money, how do you anticipate getting that? Discuss using both debt and equity financing. Also think about how you can use other people’s money (like suppliers). Be sure to address any bootstrapping measures you might take.

Even if you plan to keep your business small, imagine what you would need to do if you wanted to grow. This exercise requires you to use your imagination. The only wrong answer for these discussion purposes will be if you state you do not need money now and never will. Even if that is true, imagine what you would do if you needed it.

Any help with this would be much appericated!! Thank you !!!

Explanation / Answer

short term finances uses for fulfilling the gap between needed funds and the availability of funds. what ever the name, the short term funds are used for short term only. they should raised by using short term sources only.

the availability and uses of the funds will be depends on many other factors. they can be used estimated based on the need and based on it they can be acquired.

even i am having full of money to run a business, i will not invest total money in one busness. i will take one partner and he also contributes his services along with capital. with that acation i will deifnitely succeed at my business

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