Skip to main content

43. New sources of business capital

A Business capital, often referred to as capital in a business context, is the financial resources or assets that a company or a sole proprietorship uses to operate, invest, and grow. Traditionally, it can come from various sources, including:

1. Equity Capital: This is the money invested by the business owners or shareholders. It represents ownership in the company and can be in the form of common stock or retained earnings.

2. Debt Capital: Debt capital is borrowed money that the business must repay with interest. This can include loans from banks, bonds issued by the company, or other forms of debt financing.

3. Working Capital: Working capital is the money a business uses for its day-to-day operations, such as paying bills, salaries, and purchasing inventory.

4. Fixed Capital: Fixed capital refers to the funds invested in long-term assets like buildings, machinery, and equipment.

5. Venture Capital or Angel Investment: Startups and high-growth companies may secure capital from venture capitalists or angel investors who provide funding in exchange for equity or ownership stakes.

6. Retained Earnings: These are profits that a company has earned and retained for reinvestment in the business rather than distributing them to shareholders as dividends.

7. Grants and Subsidies: Some businesses may receive capital through grants, subsidies, or government incentives to support specific projects or industries.

8. Crowdfunding: Imagine asking lots of people (even strangers on the internet) to give a little bit of money to support your startup. This is like a team effort where many people contribute to help you reach your funding goal.

These are good sources. Fine.
Here is a are some new ways to source capital:

1. Experience or Help: Have done a job or offer a help that someone admere or praise even for once? I helped a partially blind man to cross a busy road in Lagos Nigeria. He was happy and fullfiled. Can you such experience to money-making asset?

2. Chats or spoken words: Have you used wome words during a chat conversation that heals heart, cures a broken home or get tension releived? A landlord wanted to quit a tenant in a small estate I live, I spoke few words, his anger diminished.

Having access to sufficient capital is crucial for a business's operations, expansion, and sustainability, as it allows the company to invest in assets, fund research and development, hire employees, and cover operational expenses. The composition of a business's capital structure can vary based on its size, industry, and financial strategy.

However, you can imagine what gets someone happy, a help that get someone people out of pains and anger, or words that could releive tensions, they could be sources of capital to start even small.

Comments

Popular posts from this blog

19. What is a Market?

 Traditionally, a “market” was a physical place where buyers and sellers gathered to buy and sell goods. Economists describe a market as a collection of buyers and sellers who transact over a particular product or product class (such as the housing market or the grain market). Five basic markets and their connecting flows are shown in below. Manufacturers go to resource markets (raw material markets, labor markets, money markets), buy resources and turn them into goods and services, and sell finished products to intermediaries, who sell them to consumers. Consumers sell their labor and receive money with which they pay for goods and services. The government collects tax revenues to buy goods from resource, manufacturer, and intermediary markets and uses these goods and services to provide public services.     Each nation’s economy, and the global economy, consists of interacting sets of markets linked through exchange processes. Marketers view sellers as the industry and...

31. Relationships and Networks

Transaction marketing is part of a larger idea called relationship marketing. Relationship marketing aims to build long-term mutually satisfying relations with key parties—customers, suppliers, distributors—in order to earn and retain their long-term preference and business.  Effective marketers accomplish this by promising and delivering high-quality products and services at fair prices to the other parties over time. Relationship marketing builds strong economic, technical, and social ties among the parties. It cuts down on transaction costs and time. In the most successful cases, transactions move from being negotiated each time to being a matter of routine. The ultimate outcome of relationship marketing is the building of a unique company asset called a marketing network. A marketing network consists of the company and its supporting stakeholders (customers, employees, suppliers, distributors, university scientists, and others) with whom it has built mutually profitable busines...

17. Marketing’s role in creating demand

 Marketers must have a variety of skills, one in particular being the ability to stimulate demand for their company’s services and products. However, this is too limited a view of the tasks that marketers perform and the skills that they must have. Just as production and logistics professionals are responsible for supply management, marketers are responsible for demand management along with their other roles. Marketing managers seek to influence the level, timing, and composition of demand to meet the organizations objectives. Eight states of market demand are possible:   Full demand: Consumers buy all services or products brought to market. Overfull demand: There are more consumers demanding the service or product than can be satisfied. Irregular demand: Consumer purchases vary on a seasonal, monthly, weekly, daily or even hourly basis.  Declining demand: Consumers begin to buy the service or product less frequently or not at all. Negative demand: Consumers dislike the s...