Entrepreneurial Finance: Raising
investment and managing money for start-up companies
Most entrepreneurs are very knowledgeable about their
product or service and their markets. However, when starting
a business, one enters into two markets at the same time:
the product market and the financial market. Success in the
first does not automatically guarantee success in the second.
And failure in the financial market will almost certainly
mean the failure of the company. In fact, the leading cause
of new business failures is simple: the company runs out of
money.
There can be many reasons why companies run out of money
and fail. Some, like adverse market conditions are difficult
to predict and avoid. But many financial failures could have
been avoided if the entrepreneur had a better understanding
of how to manage the finances of their company.
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