{"id":2249,"date":"2020-02-11T02:29:12","date_gmt":"2020-02-11T02:29:12","guid":{"rendered":"https:\/\/course.oeru.org\/bman111\/?page_id=2249"},"modified":"2020-02-11T02:29:12","modified_gmt":"2020-02-11T02:29:12","slug":"why-do-start-ups-need-finance","status":"publish","type":"page","link":"https:\/\/course.oeru.org\/bman111\/learning-pathways\/financing-a-new-start-up\/why-do-start-ups-need-finance\/","title":{"rendered":"Why do start-ups need finance?"},"content":{"rendered":"<div id=\"content\" class=\"mw-body container\" role=\"main\">\n<div class=\"row\">\n<div class=\"col-md-12\">\n<div class=\"panel\">\n<div class=\"panel-body\">\n<div id=\"bodyContent\">\n<div id=\"mw-content-text\" lang=\"en\" dir=\"ltr\" class=\"mw-content-ltr\">\n<div class=\"floatright\"><a href=\"https:\/\/wikieducator.org\/File:MoneyTree.jpg\" class=\"image\"><img loading=\"lazy\" decoding=\"async\" alt=\"MoneyTree.jpg\" src=\"\/\/wikieducator.org\/images\/thumb\/f\/fd\/MoneyTree.jpg\/300px-MoneyTree.jpg\" width=\"300\" height=\"212\" class=\"img-responsive\"><\/a><\/div>\n<p>Business owners need to consider finance options for all kinds of reasons. Here are just a few of the reasons why start-ups need funding.\n<\/p>\n<h3><span class=\"mw-headline\" id=\"Beginnings\">Beginnings<\/span><\/h3>\n<p>A start-up company rarely begins without any funding whatsoever.\n<\/p>\n<p>Even if you are the only person in the business to begin with, and you are working out of your bedroom, you still need funding for:\n<\/p>\n<ul>\n<li> assets e.g. computer\n<\/li>\n<li> materials e.g. raw materials for your product(s)\n<\/li>\n<li> running costs \/ operating costs e.g. phone, website, insurance, printing&#8230;\n<\/li>\n<\/ul>\n<h3><span class=\"mw-headline\" id=\"Growth\">Growth<\/span><\/h3>\n<p>As your business grows, you will want to expand capacity, either by producing more goods or offering your existing service(s) to more customers.\n<\/p>\n<p>You will probably need new technology to match your competitors, new machinery to reduce costs and improve efficiency, and maybe more staff.\n<\/p>\n<h3><span class=\"mw-headline\" id=\"Research_and_development\">Research and development<\/span><\/h3>\n<p>New products or services require funding to develop. You will also need to undertake market research and test new markets.\n<\/p>\n<p>Selling into new geographical areas or to new types of customers costs money (for example, to pay for new advertising campaigns, to open new retail outlets&#8230;).\n<\/p>\n<h3><span class=\"mw-headline\" id=\"Acquisition_of_another_business\">Acquisition of another business<\/span><\/h3>\n<p>You may decide to buy another business to add to your portfolio<sup id=\"cite_ref-1\" class=\"reference\"><a href=\"#cite_note-1\">[1]<\/a><\/sup>.\n<\/p>\n<div id=\"WEnote\" class=\"panel iDevice\">\n\t<div class=\"panel-heading idevice-heading\">\n\t\t<div>\n\t\t\t<img decoding=\"async\" class=\"pedagogicalicon\" alt=\"activity\" src=\"https:\/\/course.oeru.org\/bman111\/wp-content\/themes\/oeru_course\/idevices\/Icon_activity.png\">\n\t\t<\/div>\n\t\t<div>\n\t\t\t<h2>WEnote post<\/h2>\n\t\t<\/div>\n\t<\/div>\n\t<div class=\"panel-body\">\n\t\t<div class=\"col-md-12\">\n\t\t\t<\/p>\n<p>These are just a few examples of what you will need funding for. The exact funding requirements depend on the type of business you are building, and how big your business becomes.\n<\/p>\n<p>What do you think you will need funding for in your start-up (or existing business) in the next 12 months? Explain your thoughts.\n<\/p>\n<p>Post your comment(s) below, and then look on the <a href=\"https:\/\/wikieducator.org\/Introduction_to_entrepreneurship\/IENT103\/Feed\" title=\"Introduction to entrepreneurship\/IENT103\/Feed\">course feed page<\/a> to see what others have posted.<\/p>\n<p><div><p>You must be logged in to post to WEnotes.<\/p><\/div><br \/>\nIf you prefer, you can create a post on your learning journal blog. Be sure to label or tag your post IENT103.<br \/><i>Note: Your comment will be displayed in the <a href=\"https:\/\/wikieducator.org\/Introduction_to_entrepreneurship\/IENT103\/Feed\" title=\"Introduction to entrepreneurship\/IENT103\/Feed\">course feed<\/a>.<\/i><\/p>\n<p>\n<\/p>\n<p>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n<p>\n<b>References<\/b>\n<\/p>\n<ol class=\"references\">\n<li id=\"cite_note-1\"><span class=\"mw-cite-backlink\"><a href=\"#cite_ref-1\">\u2191<\/a><\/span> <span class=\"reference-text\"><a rel=\"nofollow\" class=\"external text\" href=\"http:\/\/www.infocheese.com\/whyfirmsneedfinance.html\">Why firms need finance<\/a><\/span>\n<\/li>\n<\/ol>\n<p><!-- \nNewPP limit report\nCPU time usage: 0.040 seconds\nReal time usage: 0.046 seconds\nPreprocessor visited node count: 129\/1000000\nPreprocessor generated node count: 938\/1000000\nPost\u2010expand include size: 3492\/2097152 bytes\nTemplate argument size: 1563\/2097152 bytes\nHighest expansion depth: 7\/40\nExpensive parser function count: 0\/100\n--><\/p>\n<p><!-- Saved in parser cache with key we_en-mw_:pcache:idhash:186649-0!*!0!!*!2!* and timestamp 20200211022909 and revision id 1073292\n -->\n<\/div>\n<div class=\"visualClear\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"col-md-12\">\n<ul class=\"pager\">\n<li class=\"previous\">\n            <a href=\"\/bman111\/learning-pathways\/financing-a-new-start-up\/video-signposts\">\u2190 Previous<\/a>\n          <\/li>\n<li class=\"next\">\n            <a href=\"\/bman111\/learning-pathways\/financing-a-new-start-up\/types-of-finance\">Next \u2192<\/a>\n          <\/li>\n<\/ul><\/div>\n<\/p><\/div>\n<\/div>\n<footer>\n<br \/>\n<\/footer>\n","protected":false},"excerpt":{"rendered":"<p>Business owners need to consider finance options for all kinds of reasons. Here are just a few of the reasons why start-ups need funding. Beginnings A start-up company rarely begins without any funding whatsoever. Even if you are the only person in the business to begin with, and you are working out of your bedroom, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":2243,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-2249","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/course.oeru.org\/bman111\/wp-json\/wp\/v2\/pages\/2249","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/course.oeru.org\/bman111\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/course.oeru.org\/bman111\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/bman111\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/bman111\/wp-json\/wp\/v2\/comments?post=2249"}],"version-history":[{"count":1,"href":"https:\/\/course.oeru.org\/bman111\/wp-json\/wp\/v2\/pages\/2249\/revisions"}],"predecessor-version":[{"id":2250,"href":"https:\/\/course.oeru.org\/bman111\/wp-json\/wp\/v2\/pages\/2249\/revisions\/2250"}],"up":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/bman111\/wp-json\/wp\/v2\/pages\/2243"}],"wp:attachment":[{"href":"https:\/\/course.oeru.org\/bman111\/wp-json\/wp\/v2\/media?parent=2249"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}