Financial Management Discussion Week 7 Essay Example | Topics and Well Written Essays - 500 words

Financial Management Discussion Week 7 - Essay Example Prototyping being the first stage requires entrepreneurs to keenly listen to prospective customers. Cheap and simple prototypes, however, should be built for the purpose of acquiring customer feedback. This level advocates for invested labor and credit card borrowing to finance the venture. At this stage trying to produce any venture capital would be fruitless except when the business can prove that it may make profits at early stages (Brooks, 2012). A vivid business model should follow the proof to offer a powerful bargaining upper hand with a venture capitalist. Customer base is useful especially after finding a customer who is willing and capable of paying for the final prototype. Also if one might want to ask capital from angel investors or family members who might want to buy a lesser stake in the particular company. At this level, the business or entrepreneur can raise money from many people who cannot scheme to oust the founder. Some Companies start g capital at this level even though it is advisable to wait and proceed with the activity at the third stage (Lawrence, 2010). Expansion is another process implemented after acquiring a trivial share of the market segment and surprisingly when also the growth of the company becomes stunted. Acquiring a new market becomes a vital activity while developing and updating products. At this level the startup CEO is in a position to discuss with capital providers because the venture is lucrative. The exit is the final process where the entrepreneur sells the business to a customer or gives a public offering (Baron, 2011). Sadly after the initial public offer is done most entrepreneurs leave their business because of the boredom brought about by the administration of a sluggishly growing publicly traded business. A company can raise capital using various ways for different uses depending on the financial necessities or on the size and nature