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Stages Of Business, Task And Financing

Stages of business, task and financing

Let’s consider a way of working of a certain virtual business. We will specify each stage of a task which stands during this moment and also financing ways.

The family business:

* There is an idea and all. Nothing more isn’t present: there are no: business plan, market researches, experience of business dealing, the personnel, a command of managers, potential risks, tasks and finances management. At the best there is an experience of circulation with a product (the goods, service). The idea generator, the head, the contractor is one person.

* What it is necessary to make? To constitute the business plan, to estimate a market outlet, to study competitors, specify, how business will develop, to estimate its potential, to form a team having allocated obligations and to generate structure.
* Usual sources financing are less accessible. The risk level is too great and there is no definiteness in success as in general, and in time of achievement of results. Private investors, the personal savings, some micro credits can also accessible.

Beginning business:

* The business plan is developed. The command is collected. There is a certain structure of the company and the hierarchy is also created. Market research is conducted, clients (and already there are ready contracts and agreements). Preselling preparation of a product is produced.

* What it is necessary to make? Finish product that can be ready to sale to sale, to finish the business plan and marketing researches, to complete a command and to start the process.

* It is not interesting yet to the majority of investors. Only some venture capital trusts can show interest in the event that there is competently constituted business plan, professional command, potential, a know-how (if it is required and the proved ownership right). Search of means is the main task also will occupy from several months till 2 years.

The developing business:

* The Company grows; the product is claimed by the market. Clients are generated and their circle grows. The command is generated and works. The monetary flow is. Shortage of means for development is felt and the market allows developing.

* What it is necessary to make? It is necessary to increase a market share even to the detriment of profitableness, by performance improvement and reduction of costs, to construct the branched out structure and logistics system.

* At this stage the company is a tidbit for all investors and financiers, especially for venture capital trusts. For them it is the most preferable round of financing. Debt instruments are accessible, but they, at wrong planning can put an end to the company (during this period at the company an acute shortage of circulating assets).

It is very important that government, despite this recession is not abandoning to help small businesses. And small business grants can be a real helper today.

But, of course, you should remember that today the fight for small business grants as well as for other types of grants is harsher. This is logical – more businesses need them. So before you start your fight for the small business grants, please visit this blog for more
details about grant industry.

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