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...

33. Product

Companies address customer needs by putting forth a value proposition, a set of benefits that satisfy those needs. The intangible value proposition is made physical by an offering, which can be a combination of products, services, information, and experiences. Product is anything capable of satisfying human wants. A product is anything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or want. Thus, a product may be a physical good like a cereal, tennis racquet, or automobile; or a service such as an airline, bank, or insurance company.  A product could also be a retail outlet like a department store, specialty store, or supermarket; a person such as a political figure, social media celebrity, entertainer, or professional athlete; an organization like a nonprofit, trade organization, or arts group; or a place including a city, state, or country; or even an idea like a political or social cause. We can define five levels of meaning fo...

08. Products and Services marketing together

 The service-dominant logic suggests that the separation between products and services is not a clear one. The ‘servicisation’ of products refers to the relative importance of the service dimension in a given product offering. Thinking in marketing has moved from a strategy that conceives of either a product or a service to one which sees both product and service dimensions in any market offering.  Many products have a service component and many services have product components. Take for example a physical product such as a car. We purchase a car, which provides the service of getting from one place to another. But the car comes with its own need for services such as insurance, finance, repairs and even a petrol station.  The Swedish car manufacturer Volvo has built a service into its cars that alerts the driver if they are falling asleep.      What a great service! Another example is a mobile phone provider such as Nokia. The company provides a product (m...