Financial Management Discussion Week 7 Essay Example | Topics and Well Written Essays - 500 words

Financial Management Discussion Week 7 - Essay ExamplePrototyping being the root stage requires entrepreneurs to keenly listen to prospective customers. Cheap and simple prototypes, however, should be built for the purpose of getting customer feedback. This take aim advocates for invested labor and credit card borrowing to finance the venture. At this stage stressful to produce any venture capital would be fruitless except when the business can arouse that it may make profits at early stages (Brooks, 2012). A vivid business model should attach to the proof to offer a powerful bargaining upper hand with a venture capitalist. node base is useful especially after finding a customer who is willing and capable of compensable for the last-place prototype. Also if one force want to ask capital from angel investors or family members who might want to buy a lesser stake in the particular company. At this level, the business or entrepreneur can rhytidoplasty money from many people who cannot scheme to oust the founder. Some Companies abrasion g capital at this level even though it is advisable to wait and proceed with the natural process at the third stage (Lawrence, 2010).Expansion is another process implemented after acquiring a trivial share of the market segment and surprisingly when also the growth of the company becomes stunted. Acquiring a new market becomes a vital activity while developing and updating products. At this level the startup CEO is in a position to discuss with capital providers because the venture is lucrative. The exit is the final process where the entrepreneur sells the business to a customer or gives a public offering (Baron, 2011). deplorably after the initial public offer is done most entrepreneurs leave their business because of the boredom brought closely by the administration of a sluggishly growing publicly traded business.A company can raise capital using various ways for different uses depending on the financial necessities or on the size of it and nature