Managing Financial Resources

When it comes to finance,of course money is involved. Money is a medium of exchange, a measure of value, and a store of value. Since people use money to buy the things they want, you could say they are trading their money for it.

Good financial management is important when starting up a business. First you need to develop a financial plan that will calculate the amount of funds your company will need for a certain amount of time and that will also include the strategy for getting these funds. You will then need to estimate the amount of sales you think you will make. After this, then you can figure out how to get the money you will need. People usually get money from personal assets, loans from friends and family, and also loans from banks.

If your business runs good, after a while, you may decide to expand and therefore will need more money. At this point to get more money, you can ask the bank for it, bring in more owners to invest, or seek funds from a private investor such as angels or venture capitalists. Angels are individuals who are willing to invest in start-up ventures,while venture capitalists are individuals who invest in businesses from their funds from private and institutional sources.

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