Major Benefits Of The New Business Startup

• This is a capital raising plan for my startup business venture known as DELIGROCE.
• The business uses internet based applications.
• aims at service provision by ensuring that the groceries are delivered right at the door steps of the clients…

• Major benefits of the new business startup

  Save Time On Research and Writing

  Hire a Pro to Write You a 100% Plagiarism-Free Paper.

  Get My Paper
  • The business is advantageous because it makes the lives of individuals to become less hectic.
  • This is through having products delivered at their own door steps (Caselli & Negri, 2018).
  • The major aim of the business idea is to develop an inventive application
  • Application will be used in purchasing and delivery of numerous grocery products or items.

  • The Business model

    • Business model will be comprised of an “internet based mobile application”
    • Application will easily be downloaded by customers from the App store on their phones.
    • Adelaide will be the city of interception
    • This due to the fact that even though it is small, it has a “youthful crowd” of individuals using the internet daily (Milosevic, 2018).
    • • The use of appropriate technical support and advice will ultimately lead to the development of an “app based “portal”
      • The app will be quite user friendly thus making easier for customers to use it.
      • The app will be user friendly to both the vendor as well as the consumers using it.

The basic principles for raising capital for the business startup

• These will include among others:
• Ensuring that the business plans as well as marketing will be solid.
• Will ensure that I know everything about the internet business
• I will ensure that I perfect my pitch.
• I will make sure that the financials are available and that they depict the revenue stream.
• I will ensure that I engage with other individuals who have succeeded in the in the internet business.

Capital Requirements at Different Stages

• It is important to note that the new business venture will require different amount of startup capital during different stages of its development
• These will include among others bootstrapping, seed, production, and expansion phases (Wallmeroth, Wirtz & Groh, 2018).

The Bootstrapping Development Stage

• The bootstrapping stage is where the business starts getting money from its customers.
• This is an essential stage because it will enable the business owner to ensure that valuable resources for the organization are well treated.
• The money that is attained from bootstrapping by the business will be used for maintaining its daily operations
• For example, in the purchase of the raw materials that will be used in making the products.

The Bootstrapping Development Stage

• The bootstrapping stage is where the business starts getting money from its customers.
• This is an essential stage because it will enable the business owner to ensure that valuable resources for the organization are well treated.
• The money attained from bootstrapping by the business will be used for maintaining its daily operations
• E.g in the purchase of the raw materials that will be used in making the products.

Expansion Money (B)

• Money for the expansion of the business can be borrowed either privately though the bank loans
• even be publicly done through debt issue.
• The drawback that emanates from borrowing money is that the accruing interest must ultimately be paid to a lender.

Equity Funding

• The business can effectively generate money through selling part of itself through shares to the investors in a process known as equity funding.
• This process is beneficial in that the investors do not actually need interest payments in the way that it is done by the bondholders.
• The major drawback lies in the fact that further profits.

References

Caselli, S. and Negri, G., 2018. Private equity and venture capital in Europe: markets, techniques, and deals. Academic Press.

Klonowski, D., 2018. Improving the Substandard Venture Capital Model. In The Venture Capital Deformation (pp. 311-324). Palgrave Macmillan, Cham.

Milosevic, M., 2018. Skills or networks? Success and fundraising determinants in a low performing venture capital market. Research Policy, 47(1), pp.49-60.

Wallmeroth, J., Wirtz, P. and Groh, A.P., 2018. Venture capital, angel financing, and crowdfunding of entrepreneurial ventures: A literature review. Foundations and Trends® in Entrepreneurship, 14(1), pp.1-129.

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order