Revo Island

1. What tips can you offer Brian Razzaque for creating a business plan that will attract the capital SocialToaster needs to fuel its growth?

Brian Razzaque needs to be very clear about its goals and the plans he wants to implement in advanced SocialToaster. This will enable him to provide insights to traders who will see a net improvement in the use of their investment funds.

Brian had to satisfy part of my ability to trader and describe the possibilities of their prosperity that his plan was composed of and ask them to come up with a dangerous way to make the right amount of money in his marketing strategy and see it develop in many ways.

2. What advice can you offer Razzaque about presenting his plan to potential lenders and investors?

Most companies can no longer easily decide for themselves whether this generation belongs in the IT department or the advertising and Marketing Department. As a result, we often find ourselves selling to everyone in the audience. When we included the audience factor in our consulting case studies, we found that the revenue cycle was shorter, with each new buyer driving an expansion of investor interest.

3. Write a brief memo to Razzaque describing the advantages and disadvantages of using debt capital and equity capital.

Advantages of Equity

Less risky: Fair financing is less risky because you don't have a fixed monthly mortgage bill to pay.

Credit issues: If you have credit score issues, equity financing may be the most convenient budget growth financing desire.

Disadvantages of Equity

Cost: Equity buyers look to get their money back. The business owner should be inclined to divide the income of the organization proportionately with that of his equitable partners. The money paid to a partner may be better than debt-financed hobby expenses.

Advantages of Debt

Control: Mortgages are temporary. When the debt is paid, the date ends. Now lenders no longer have any say in how operators run their businesses.

Taxes: Loans are tax deductible, while dividends paid to shareholders are no longer tax deductible.

Disadvantages of Debt

Fixed bills: Principal and amateur notes must be made on a specific date. Businesses with unpredictable money flows can have problems paying their mortgage bills. A drop in revenue can create key problems at the date of the mortgage fee.

4. Which sources of debt capital offer the greatest potential for SocialToaster’s financing needs? In what order would you prioritize the sources you have listed (from greatest potential to least potential).

Debt capital can be considered as capital raised by a company in the form of loans to other individuals or institutions. The loan must be repaid in the future, with interest.

The most promising sources of debt capital for SocialToaster's financing needs crowdfunding, financial institutions and family or friends.

The order of priority for the resources listed above could be fund raising, friends and family and financial institutions.

5. Which sources of equity capital offer the greatest potential for SocialToaster’s financing needs? In what order would you prioritize the sources you have listed (from greatest potential to least potential)?

Equity capital refers to the amount of dividends distributed to shareholders and stakeholders who hold common or preferred shares. Equity capital is the remaining funds allocated by a company to ordinary or preferred stakeholders or shareholders of the company.

The most promising sources of equity capital for SocialToaster's financing needs, relatives, use of savings and credit cards, and going public.

The priorities of the resources listed below could be taking the company public, relatives and using debit and credit cards.

6. What advice can you offer Razzaque about avoiding potential dangers and pitfalls in accepting outside financing for a business?

When accepting external financing, Razzaque can avoid potential dangers and pitfalls, including having to remember that there are many financial institutions lining up to provide loans to entrepreneurs, but it is up to the entrepreneur's intelligence to check and choose the type that best suits the business and its capital needs. Razzaque must also bear in mind that any financial source, whether from outside financial institutions or friends, family, returning capital as a loan must be in the future time, so the business plan must be strong and its return on investment to start as soon as possible.