Importance of Finance for a Start-Up Charity
An investigation in how to support a start- up charity effectively
The topic of the overall research study is about the accounting and finance as the aim of this research is about the start-up who organized charity as a source of finance for funding all its initial business requirements within a given span of time. With the help of this method, an entity will be able to fulfil all its business requirements by emphasizing on both monetary as well as the non-monetary aspects of a start-up (Veliz and Veliz-Campos, 2018). Nowadays, with the increasing technology and changes takes places in the external market the importance of all the start-ups will get increases with the passage of time which allows all the businesses to show their interest towards the start-up in accomplishing the funding requirements of a start-up.
Finance is consider as the lifeblood of a business without the which the life of a business is not imaginable as without finance the survival of a business is not possible as in operating business it requires enough amount to meet all the daily routine expenses such as petty cash expenses, cost of operating, starting costs, fund generating costs, cost of arranging a charity function in an effective way, printing costs of tickets for inviting all the high profile and large-scale investors to attend this event to fulfil the funding requirements of a start-up (O’Halloran, 2017). The generation of the business idea should be innovative and creative to steal the attention of all the investors towards the idea of a start-up as the uniqueness of the idea will assure all the investors about the generation of the end results in the future. The calibre of an individual and its overall start-up is judged by testing the unique idea of a start-up as an entrepreneur enters in the market by taking various things in hands such as its intelligence, risk-taking ability, idea and its self-confidence (Potgieter, 2017). All these things are required in a start-up to ensure the overall survival of a start-up for a longer period of time otherwise the survival of a start-up is not possible as the level of competition is very high.
With the help of thee current research, a researcher will helps in stressing on all the points specifically created for the sake of a start-up by identifying the problems or challenges faces by a start-up in arranging finance to resolve their issue by exploring all the solutions available in the market as the focus of the client is to tests the validity of this source of fiancé in getting the money within a given span of time (Bianchi, dos Santos and Borini, 2018). Pros and cons of the charity is also discussed in this research to guide the current as well as the potential users who wants to fund its start up in the present as well as in the future. The venture capitalists will attend his event to invest in the business of a start up after analyzing their potential and capability to repay the invested amount back in a given period as discussed mutually by both the investors and the start-up after evaluating their calibre in comparison to the external market conditions.
- How to support a start-up charity?
- What support does a start- up charity need?
- What strategy used to manage cash flow?
- What issue with finance does a start-up charity have?
- To suggest on what resources are available to start-ups
- To investigate what citizens give support and where they are situated.
- To analyze free courses on how to manage cash flow
- To evaluate ways in which start-ups can keep good accounting records for financial purposes
Supporting a Start-Up Charity: Pros and Cons of Charity
It is essential to identify the limitations and the restricting while conducting this particular research to facilitate all the users in collecting an appropriate data for this research. One of the limitations while conducting this research is the resistance of all the investors who did not take active participation in the charity event whose impact will show the performance of a startup as if the investors will not attend the charity event then the funding requirements of a start-up on this event will not get achieved as their objective will get failed. Another limitation in performing this research is that the over-dependence of the start-up only on this source of finance as some other sources of finance are to be searched for as arranging the finance only through this mode is not suitable for a start-up as this will not generate any finance for the client (Sarif, 2017). Other forms of finance and sources of funds include seed capital, venture capital, bank loan and small finance as according to the requirements of the client. All the methods have different advantages and disadvantages which an individual will consider the most suitable approach as according its requirement that allows an individual in fulfilling all its finance requirements within the deadline given by the external client (Cohen, 2017). The opinion and mentality of the client different from one investor to another as they trust on the capabilities of a start-up by developing various performance criteria’s whose success rate is moderate as a start-up will not get assured that its funding requirements will get accomplished by impressing the investors as all the investors will review the capabilities of a start-up in different ways which will waste the time of a startup that may deflate them in achieving its aims and the objectives.
As per the study of (Marshall, Coleman and Reason, 2017), there are in total five resources to be used by a start-up before starting it business in the most organized and in a systematic way. It includes various resources such as financial resources, human resources, educational resources, physical resources and emotional resources required in starting the curious and exciting journey. Finance is the basic need of every business to meet all the expenses to strengthen an entity by keeping the total capital of the firm. Through charity, the financial sources can be arranged by using crowd finding under which high profile investors and the business experts will attend this event who will invest in the business of a start-up after reviewing the business proposal of a start-up after a specific interest rate, time period and the instalment to be repaid by an entrepreneur to the lender before the time. Another resource required for a start-up is the human resources as the number of personnel will be quite less in the initial period which will get an increase with the passage of time. A human resource will represent the business as an employer’s business will get strong when a human resource manages its overall business The educational resources will consist of deep knowledge about the external market to review the overall levels of the external market competition to craft the strategy of its own business. Emotional resources specify the stress reliever to manage the stress of an individual which will get develops when the strategy of an individual will fail in comparison to its competitors operating in a similar market.
Resources Required for a Start-Up Charity
(Carlsson-Wall, Håkansson, Kraus, Lind and Strömsten, 2018) has asserted that the survival of a start-up is not possible until they are supported by the external party in terms of the financial as well as the non-financial aspects (Startup incubator, 2018). Nowadays, the fresh talent of all the individuals are praised by the external party by creating a special incubation centres for giving all kinds of support to a start-up till the setting up of their businesses and also to give support after the set in order to deal with all the problems faces by an individual such as handling the changing needs of all the customers, challenges imposed by all the rivals existing in a similar market or industry, development of a product or service, dealing with the existing or potential investors in expanding the existing business of an entity. A founder card is an organization aims to support all the needs of an entrepreneur and innovator as it is situated in New York until now facilitated the needs of more than 2 lac people. The start-up incubator centre developed by the Oxford University of innovation aims to fulfil all the requirements of a start-up is located in the United Kingdom in fulfilling all the needs and the expectations of a startup to change its status from a novice player to the matured individual.
(Teckchandani and Obstfeld 2017) has stated that cash flows are considered as the best suitable mode in analyzing the cash flows generated from a particular period which should be analyzed using valuation and the financial analysis to track all the cash inflow into and a cash outflow from an entity to ensure the overall performance of a startup. By reviewing the cash flows generated by the firm, the calibre and the position of an entity is to be determined within a given span of time. Measures of the capital investment are used o rests the authenticity and the overall validity of the cash flows using the internal rate of return, net present value method to guide an individual whether to continue or reject a particular investment project (Valuation analysis, 2018). The efficiency of the project is identified by analyzing the cash flow generated from it. The capital investment approaches are based on the time value of money concept under which the future of an entity is determined by using assumptions in the present period. It will consider various approaches to be followed by a start-up such as discounted cash flow method multiple approaches as the motive behind all of these is to ensure the performance of an entity by keeping each and everything into considerations while performing this research study.
Supporting a Start-Up Charity: The Role of Incubation Centers
(Vedhathiri, 2018) observes that accounting is required for a start-up in managing all the records of all the expenses and the revenue generated by a start-up in a particular period. By keeping a better accounting record, the position of an entity can be easily determined by an individual by using the small scale accounting which is customized as according to the needs of a small scale industry whose aim is to just the record the transactions takes places in an entity to ascertain the profit or loss generated by the business to compare its financial position in front of its competitors in the external environment. By using QuickBooks, the accounting records can be managed by feeding all the transactions into this system to generate all the reports such as profit and loss account, balance sheet and cash flow statement which helps in determining the overall financial position of an individual in determining the annually or quarterly performance of an entity to show the overall worth and the image of an entity in front of all is external stakeholders who will get attracted towards the business after analyzing the entire performance of an entry using various criteria’s.
Research methodology is regarded as an important approach that acts as a compass for a researcher in conducting its research as this tells a user a particular direction to move its entire research in a particular direction for the sake of all its user who is directly or indirectly associated with the current study (Willig and Rogers eds., 2017). The research methodology is applied in investing the support given to a start-up through charity in an effective way by fulfilling all their needs. The research methodology uses by a researcher will emphasise on two of the methods such as qualitative and quantitative methods which further includes the primary or secondary methods as per the knowledge and the preference of a researcher after analyzing the nature of the research study.
Positivist’s research philosophy shows the factual knowledge which is gained by observing through the senses of an individual (Positivists research philosophy, 2018). This philosophy is selected when the research is related to the collection of data and interpretation of all the collected data to explain the methods used in selecting all the data for this research.
This research philosophy is an opposite version of the positivist’s research philosophy under which the all the ideals are used to check the authenticity of the overall data as the motive of a researcher behind this method is to use the idealism and assumptions while trusting the data’s accuracy using the quantitative analysis instead of using the quantifiable techniques (Interpretive research philosophy, 2018).
Analyzing Start-Up Charity Performance: Cash Flows and Accounting
Positivist’s method is chosen by a researcher under this research study as this study is related with the identifying the support given to a start-up in arranging a charity in an effective way is quantitative study under which a researcher will collect data and tests its validity by testing the accuracy and validity of the collected data.
Deductive This is a research approach used in checking the accuracy of a research study as this will test the theoretical aspect covered in a study by creating a hypothesis of the research and then test to determine the end results that whether to select or reject the hypothesis develops or the current research study.
Inductive- This method does not involve the creation of a research hypothesis as this method believes in the research observation and teats to set a defined research pattern to create a research theory (Doherty and et.al., 2018, July). By using this research method, the effect of one variable on another will be easily checked to get the end results whether to continue or discontinue the overall research study.
Primary- It is a research method in which the data is personally collected a by a researcher to ensure the sensitivity of a research as their aim is to fulfil all the goals and the aims of the researcher (Walliman, 2017). The nature of the current study is that in which the actual data is to be collected which includes the responses of all the investors and start-up individual by using interview methods.
Secondary- In this method, books and journals, magazines and the internet as a source of information are used to collect the data for this research study (Klincewicz, 2017).
Mix method is considered for this research study that is both primary as well as the secondary method of research is selected (Ashwin, Abbas and McLean, 2017).
Quantitative- It is a systematic process of collecting the data from authentic and valid sources by using various statistical techniques in testing the reliability of the data to check the arithmetical accuracy of the collected data (Nicholls, 2017). The collected data are analysed to know the end outcomes.
Qualitative- This research method includes the collection of non-numerical data using scientifically techniques based on the observation of a researcher by focusing on the characteristics, features, symbols, metaphors and theoretical concepts covered in a research study (Davis, Jefferies and Ke, 2017).
The qualitative method of a research is considered for this study as this study is related with the identification of the support given to a start-up in meeting its financial requirements which attracts the features of a qualitative research (Bell, Kothiyal and Willmott, 2017).
Conclusion
Interview method is to be followed in conducting this research under which unstructured interview is conducted in the there are no standard forms of questions to be asked to its respondents as random questions are asked to all the target audiences of the research to get their answers according to the current research (Silverman, 2018).
Interview (Enclosed in Appendix 1)
The qualitative comparative analysis method is used to analyze the data collected in this research study which aim to analyze all the aspects covered in the current research by giving two alternatives to draw a comparison with each other to determine the results.
It is analyzed by conducting interview method that charity is proved as a successful approach in generating the financial resources as the answers of the respondents are in the favour of this mode (refer to Appendix1)
Ethics play an integral role while conducting a research which states that an individual is required to seek the consent of all the author’s whose information is used by an entity in its research to avoid any allegations in the future about the copying of the information as in this case the research study will get fail as this will not be utilized by any scholars in the future (Sorokin, 2017).
It is concluded from the above research that a start-up faces challenges in getting the fund from the investor but the charity method of funding proved as a successful approach for all the start-up to get the fund. Using his method, a start-up will be able to fulfil all its requirements within a given span of time as their focus lies on meeting all the needs of their users by showcasing its talent in front of all the investors.
References
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Online
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