Activity 6: Finances
Activity Six illustrates the importance of being able to raise funds to when starting a business. There are many ways to get your business up and running, from the informal such as personal savings & borrowing, borrowing from friends & family, to the more formal avenues like bank loans, raising equity to crowd-funding.
About this case study
The case study illustrates the importance of being able to raise funds when starting a business. There are many ways to get your business up and running, from the informal such as personal savings & borrowing, borrowing from friends & family, to the more formal avenues like bank loans, raising equity to crowd-funding.
In this activity you will:
- Find out about the theory of raising capital for a new business
- Meet Sam, Barney and James our sixth and last team of entrepreneurs and learn about their business challenges
- Hear the advice of the business professionals
- Provide your advice through an online poll
- Hear what the team actually did
- Check your understanding
- Relate the learning to your own business ideas
Having completed this activity you will be able to:
- Understand the different sources of funding
- Understand how funders involved may be able to help you & your business
- Decide which source of funding is most suitable for your business idea
Raising capital for new ventures
In this lecture Dr. Emilee Simmons introduces you to the different types of funds that can be raised to help get your business up and running.
The way a new venture is financed often depends on a number of factors such as the company type, the market or sector the company is trading within and, in some cases, the aspirations of the founders.
Having watched the video you might like to consider the question posed by Emilee:
- What kinds of funds do you think would help your new venture and why?
Feel free to share your thoughts and ideas in the comments section before moving on to find out more about Sam, Barney and James and the challenges they have faced when considering financing their business.
The team's business challenge
In this case study the entrepreneurs have a finance challenge. Sam, Barney and James have identified a number of options for taking their business forward and they are asking you to consider these options and discuss your thoughts with your fellow learners.
Watch the video case study and then, having considered the full range of funding options open to a new business, decide what you think they should do. Which is the best finance option for the business at this time? Don’t forget to think about the different type of borrowing and reflect on the longer term implications.
Having reached your decision move on to the next step where our four advisers give their response.
Advisers' view
Each adviser has provided their thoughts on how Sam, Barney and James should move their business forward. The video above provides a consolidated response featuring key points from each adviser.
What do you think?
Our entrepreneur needs your help! Having watched the case study and adviser videos it’s time for you to vote for the option(s) you think our entrepreneur should choose.
The team's decision
Sam, Barney and James: JumpIn
In this video Sam, Barney and James explain which options they chose and why. Are you surprised by their choices?
If you would like to know more about JumpIn you can access their website at www.jumpinstudent.co.uk.
Check your Understanding
Check your understanding by completing our short online quiz. You can download the answers once you have completed the questions.
Test your Understanding
Having reached the end of the first week of this course you can now test your understanding. At the end of the test, correct answers will be provided. You can then check your understanding level.
Test your Understanding
How did you do?
