According to the economist Joseph Alois Schumpeter, entrepreneurs are not necessarily motivated by profit, but consider it a standard to measure achievement or success. To be able to start a business, it is essential to establish: a plan, the sales techniques, the negotiation techniques, the search for financing, administration and human capital.
Money is the soul of a business and finances are the nerve centre. Finance is the process of creating, moving and using money, allowing the flow of the same in the company. The finances are fundamental to create or to promote a business, to gain assets, to develop products, to execute surveys of market, publicity, etc.
Every entrepreneur needs funds for business growth, to increase their competitiveness in the market and to maintain their operating business and their customer base. In the following slides we are going to talk about the different sources for financial support.
The three main sources of financing for a company are income from commercial operations, contributions from investors and loans from individuals, financial institutions and other types. In this way, it is important to evaluate these sources of financing.
Evaluate them in short-term, such as payroll, or long-term, such as product purchases. Select the most convenient financing for our business is a way to get the success and growth of our company. These form the backbone of a company. Conversely, inefficient management of finances and the grown source of financing could lead to a shortage of liquidity in the company.