business math

Comprehensiveness is the most helpful feature of the Small Business Administration 's web site at http /www .sba .gov , where headings covering a broad range of subjects are systematically broken down into explicit subheadings . Visitors can get information of a general nature and then zoom in on specific s . For example , the Financing Your Business ' section includes Special Interest ' programs designed exclusively for businesswomen as well as Special Purpose Loans targeted at particular business areas such as exportation and pollution control . As a good starting point for primary information , I focused on

br Financing Basics ' which emphasizes the crucial role that knowledge and planning play in a small business operation

This need for financial know-how and preparation is demonstrated by the inclusion of a list of questions that potential lenders should ask themselves . Being the best baker in the state will not guarantee a successful pastry business if you do not seriously consider all aspects of financing , such as the type of loan you need , the degree of risk involved in the business , or the impact of seasonal cycles on profit . A requirement for anyone seeking financing is the preparation of a sound business plan , which financial sources will use when deciding whether or not to provide capital for a small business . Drawing up such a plan is possible only if all potential conditions and circumstances have been realistically considered

Financing Basics ' also gives an overview of equity financing versus debt financing , advising that businesses with a high ratio of equity to debt should seek debt financing , whereas firms with a high proportion of debt to equity should obtain funding through an increase in equity investment . The conclusion states that lenders are usually required to assume great risk by offering personal guarantees in the event of default , reminding us that these words and concepts represent real lives and real fortunes /misfortunes . The main lesson to be learned is that for a small business venture to succeed , you can never be too knowledgeable or too prepared

Works Cited

United States . U .S . Small Business Administration . Small Business Administration

http /www .sba .gov /financing /index .html (26 Oct . 2005

BUSINESS MATH...