Introduction to Speaker
Where does Financial Strategy fit in business?
Going it Alone vs Securing Financing
The best type of financing for your company
Traditional vs Alternative financing
10 [a]A wife of noble character who can find?
She is worth far more than rubies.
11 Her husband has full confidence in her
and lacks nothing of value.
12 She brings him good, not harm,
all the days of her life.
13 She selects wool and flax
and works with eager hands.
14 She is like the merchant ships,
bringing her food from afar.
15 She gets up while it is still night;
she provides food for her family
and portions for her female servants.
16 She considers a field and buys it;
out of her earnings she plants a vineyard.
17 She sets about her work vigorously;
her arms are strong for her tasks.
18 She sees that her trading is profitable,
and her lamp does not go out at night.
19 In her hand she holds the distaff
and grasps the spindle with her fingers.
20 She opens her arms to the poor
and extends her hands to the needy.
21 When it snows, she has no fear for her household;
for all of them are clothed in scarlet.
22 She makes coverings for her bed;
she is clothed in fine linen and purple.
23 Her husband is respected at the city gate,
where he takes his seat among the elders of the land.
24 She makes linen garments and sells them,
and supplies the merchants with sashes.
25 She is clothed with strength and dignity;
she can laugh at the days to come.
26 She speaks with wisdom,
and faithful instruction is on her tongue.
27 She watches over the affairs of her household
and does not eat the bread of idleness.
28 Her children arise and call her blessed;
her husband also, and he praises her:
29 “Many women do noble things,
but you surpass them all.”
30 Charm is deceptive, and beauty is fleeting;
but a woman who fears the Lord is to be praised.
31 Honor her for all that her hands have done,
and let her works bring her praise at the city gate.
To start a business, you either have the money or need financing
... the entrepreneur is always the first investor
Free use of facilities and equipment
Unpaid Labor by friends and family
Forgiveness or deferral of debts
Commercialization effort grant
... may have strings attached
... does not require repayment
Borrowing from banks or financial institutions
Attracts an interest
Types of debts available
Equipment and improvement
Accounts payable financing
Types of Debts
Line of credit
Vehicle lease (often with purchase option at the end)
Corporations using financial markets to borrow money by issuing bonds
used by governments, schools, corporations
Lender has no say in the management of business
Loan payment are predictable
Lenders do not share in the business's profits
If repayments are not made, the lender can force the business into bankruptcy
Lender can take the home and possessions of the owner(s) to settle debt
Debt payments increase a business's fixed costs (and lowers profits)
Repayment reduces available cash
Lenders expect regular financial reporting and compliance with loan contracts
Debt can destroy companies
Through giving too much ownership, the entrepreneur could lose control of the business to the equity holders
Can be for loans or
Offer a share of the company instead of just borrowing from friends and family
e.g. Banks, which operate on these 5 C's
Negotiate with vendors IN ADVANCE for better terms of payment, or hold off payment for a longer period.
Never skip payment
CrowdSourcing or CrowdFunding
Raising small amounts of money from a large number of people typically over the internet