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Financial Managment Decision Making Essay

570 words - 3 pages

Due to the change in the economy there have been businesses that has went under, due to poor management or bad financial decisions along the way from start of the business to the end of it. Which brings me to how I would fund my business that I am working towards at this point I research avenues of approach to fund my business. Here are area’s I have looked at:
Investment Banker

An investment banker is a banker who will sell and negotiate the terms of an investment on behalf of a client. The main function of an investment banker is to take the responsibilities of the action of selling and investing away from the client and into more knowledgeable hands. The importance and value of an investment banker is that they are responsible for making important sales ...view middle of the document...

Financial Management

Financial management is a relatively straightforward and quite self-explanatory term. It can refer to a person's ability to manage their own personal finances at home. It could also refer to requesting help from a bank or building society that hires specially trained financial managers to assist people and companies on how to adapt the best financial strategies. The importance of financial management is that it creates much more awareness of financial techniques and the importance of managing money correctly.
Risk Financing

Finally, risk financing is a term that refers to the action of saving and providing money that can cover for any unforeseen losses that a company may encounter. Normally, this will involve pooling money away in reserves ready to be used in the event of a crisis.

I would have to go with a combination of a loan, and licensing the technology that I have worked on to get started. The reason why I chose to go this route is because this method is sound and I can branch out to other companies to field the product and set it in motion. I feel that this would be a great move not only for me to take but it would be the best risk and toughest on I would ever have to take and the best decision I would have ever made for the company.

The pros from me choosing these two methods is because that if one fails I have the other as the backup. But overall the reason why I chose the two is because that I would need the funds to start and the funds to start production of the product. The cons for what I have chosen, I really do not see any cons for what I have chosen. The only other option I see is someone buying into the company or having partners that invest in the company.

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