The Significance of Funding for Business
The importance of funding for business The Significance of Funding for Business The significance of funding for business cannot be over emphasized. With rare exceptions, money is crucial to get a business up and running. Once profits start coming in, some of that revenue can be reinvested in the business to attract more customers and rake in even more profits. Proper planning and cash management ensure that business funds are not wasted on initiatives with a poor return on investment. Money as a Barrier to Entry According to MaRS , money, aka capital requirements, represents a significant barrier to entry for many people interested in starting a new business. For example, even a chef with incredible passion and talent must be able to afford all the startup costs associated with opening a restaurant, including the building lease, kitchen equipment, dining furniture, staff paychecks and business licenses. Obtaining a business loan or other form of startup funding,...