Hierarchy Of Funding

Funding: The business equivalent of rocket fuel. 

Providing Capital is value. Investors want value- because interest leave shares of profits. 

Creating a ladder

Personal

  • Cash
  •  Credit
  •  Loans

Friends and Family

  • Unsecured Loans

Banks and Credit Unions

  • Secured Loans

Mortgages and Auto Loans

  • Seize Property
  • Bonds 

Debt sold to Lenders

  •  Receivable Financing

Control of business for capital

To Lender

  • Angel Capital

Loans-Capital-$10,000-1 Million -1 to 10%

  • Venture Capital

 Large money for seat of Directors

  • Public Stock Offering (IPO)

 Ownership on the Market

o   Via Investment Banks

  • Angels and Venture Capital

Returns

Dividends of Profit

Selling Shares

Cash Out Acquisition Track

Power Battle

  • More Advisors more Delays

Communication overhead

  •   Bootstrapping

No funding Startups

  • Return on Investment (ROI)

Value Created from time or goal for competing resources alternatives

Semi educated guess

  • Sunk Cost

Investments of time energy and money

o   Don’t pour concrete into a bottomless pit

  •   Internal controls

 Patterns in Revenue costs Value chain         

o   Budgeting

  • Standard Operating Procedures Data Collection

Profit margins

Cash Flow Cycle

 Leverage

o   Needs good Supervision + Compliance

  • Best to have someone else Audit this for you.