Essay Example on Start a New Business: Unlock Freedom & Wealth With Financial Consideration

Introduction

The value that is given or established directly or indirectly utilizing sales and fees, contributions, dues, charges, sales, or donations are referred to as financial consideration. An example of financial consideration is where an individual agrees to receive a certain offered amount of equity in any business. In return, they allow the business to use their intellectual property. A new business means freedom like you have never had a chance to have. Besides, it can mean a wealth untold under circumstances that are smart with the finances (Schulte, 2019). The most business results in shutting as a result of poor financing. At the start of the business, there are some financial considerations that, as an individual, they are obliged to take into consideration. The essay will discuss this consideration, limitations as well as benefits.

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Financial Considerations

Keeping a line of credit

In most circumstances, you are likely to need access to the funds rather than the initial investments to keep the business growing. Therefore, considering taking the line to revolve credit aid in helping to stay afloat of the business. The said, "revolving credit" is a unique crediting form that is different from a traditional loan. Secondly is minimizing overhead. It is essential to understand that everything you spend in the business relies on your profit. Therefore in such instances, you are obliged to prioritize the purchases to minimize costs (Lashgari, Taleizadeh, Sana, et al., 2016). You should make a list of the things that you need to purchase or also lease to have an idea of your start-up as well as operating costs. Thirdly is, tracking as well as monitoring spending. The majority of the start-ups end up failing for a variety of reasons; one of them is running out of the funds. In this case, you are indulged in understanding where every coin goes and where every dollar is coming from.

Investing properly

Spending funds is the best way to make more funds or money in the business. That will apply where you are smart in investing. You have to take into consideration your priorities. Lastly, this is maintaining the cash reverse. It takes time before your initial saved funds dry up. You are supposed to really on the other side of lines and loans, although it is also good to have liquid assets. In business, having savings helps your business pay interest in making purchases, providing financial cushion, and so on.

Limitations of Financial Consideration

We have a few limitations of financial planning that an individual is supposed to be aware of. First is no availability of data. In this case, you fail to understand the genuine data associated with what individual desires. Lack of communication. In case there is no appropriate communication, the financial strategy does not effectively exercise (Ballwieser, 2004). Thirdly is an expensive process that ends up delaying some cases which expense in regards to planning, which is directly proportional to the time invested during the stage of planning.

What are the benefits associated with the development of change projects?

Stated below are a few benefits that are incurred as a result of the change. There is progress that makes the state in which the project was to change. Mostly this is a positive change. Some improvements are incurred in the new project. Every change comes with some improvements (Keeys & Huemann, 2017). Lastly, there is a new beginning. Every change is marked as a turning page. It is simply closing one chapter with the aim of beginning another. It, therefore, brings excitement to life.

References

Ballwieser, W. (2004). The limitations of financial reporting. The Economics and Politics of accounting, 58-78. https://books.google.com/books?hl=en&lr=&id=SuznCwAAQBAJ&oi=fnd&pg=PA58&dq=Limitations+of+Financial+consideration&ots=qXhpaoUje8&sig=qgC7w5fJb9B7J6mu-Tp-AC4YsM0

Keys, L. A., & Huemann, M. (2017). Project benefits co-creation: Shaping sustainable development benefits. International Journal of Project Management, 35(6), 1196-1212. https://www.sciencedirect.com/science/article/pii/S0263786317301874

Lashgari, M., Taleizadeh, A. A., & Sana, S. S. (2016). An inventory control problem for deteriorating items with back-ordering and financial considerations under two trade-credit levels is linked to order quantity. Journal of Industrial & Management Optimization, 12(3), 1091. https://www.aimsciences.org/article/doi/10.3934/jimo.2016.12.1091

Schulte, T. (2019). Financial Considerations of an Anesthesia Consult Service. Journal of cardiothoracic and vascular anesthesia, 33(4), 887-893. https://www.sciencedirect.com/science/article/pii/S1053077018311091