english 1.3 ĐH Thương mại

Introduction
Hello, we are group 5. There are 6 members in our group: Tuyet Mai, Vu
Mai, Binh Minh, Thanh My, Bich Ngoc and Van Nam. Today our group is here
to talk about “. How can you get money for your company operations?”
Well, started operations means that you must have the capital to do it. This is
a basic requirement for you to realize your intentions. In recent years, the
number of business loans increased compared to the previous period. Aentevery
important reason, which is more economic openness among countries in the
region and around the world have created favorable conditions for newly
established companies engaged in economic networks commerce.
But perhaps anyone also find that raising capital to fund business operations
is always problematic. Many people abandon their dreams also enriched by it.
Currently, to get funding for your business can be managed in ways different.
Basic way they can mobilize personal property, relatives, acquaintances. But
according to current trends, the majority of loans from banks or insurance
companies, or possibly via the Internet to attract investment ... Every individual
can find a suitable method for their loans to start the business and to use that
money for maximum efficiency with the highest profits, you can succeed. This
discussion of our group will give more details of a loan for those who started to
build a career, help people have a clearer view of the matter. Here are 6 ways to
get startup money to launch your new business. .
The first part is Personal Savings
Personal Savings
A lot of people dream about owning their own business. I've seen potential
businesses close their doors even before they've opened. Why? One of the
problems is their failure to secure any type of business financing. Personal
savings are probably the number one financing source that most businesses take
when starting a new business. These are the most important sources of finance
for a start-up.
Getting money for starting a business is one of the thorniest parts of starting a
business. The first key is to save money so that you can put your own personal

savings into the business. Nobody is going to want to invest in your business if


you do not invest in your business yourself. Lenders cannot help poor people.
But they can certainly help rich people that don't have any money yet. It is
difficult enough to get a loan with a business startup and next to impossible if
you don't invest in your own business. Lenders want a track record and you may
have none. Live frugally and save money so you can show potential lenders that
you are committed to your business
Personal savings are commonly used by business owners to help pay for
startup costs. You won't incur any interest expense when you use your own
money to finance your business. You also won't have any creditors to pay back,
and no one will come after you for money if your business fails or isn't
successful right away. Investing personal savings maximises the control the
entrepreneur keeps over the business. It is also a strong signal of commitment to
outside investors or providers of finance.
However, most beginning entrepreneurs don’t have adequate personal savings
to fund a business start-up. Others, on the other hand, have savings but refuse to
dip into their piggy bank for a variety of reasons. It may be their retirement
money or for emergencies; while others would rather use their savings as
collateral and borrow against it at a low interest rate.
The second part is being presented by Vu Mai
Seek investment from family, friends.
Besides the capital accumulated from ourselves, then the mobilization of
family and friends is one of the most effective search for capital. Because they
are the ones to supporting your success will be easier compared to other funding
sources such as banks or credit institutions.
With advantages such as easy to convince, fast, simple, many young people
see this as an end to his career entrepreneur. But you also need to understand,
these funds are very difficult to control time. Whenever, you can also be active

on the issue of pay. On the other hand, money is sometimes easy to cause a
negative impact on the emotional relationship initially. Therefore, when using
this method of raising capital, you need to think about the payment to weigh the
pros and cons of it.
Find funding from partners


This method is quite popular choices when starting a business. By convincing
those who have idle capital flows to invest in your company. This method is
considered quite effective cooperation. You can use your product key to
convince partners about the possibility of success in the future.
Mobilized from the general business
In some cases, start-up from a group or at least two people. With a unique
idea, a full feasibility plan, you absolutely have the ability to search for people
starting a business together. The start-General will help you solve a lot of
difficulties in capital, adding that there are more decisions in their work as well
as the problem arises. However, you should remember: although capital is an
important factor, but you also need a long-term partner, with each of opinion,
personality and business. Having so your business and new associates really
effective and bring success.
The third part is being presented by Binh Minh
Venture Capital:
Venture capital is money for new, young, and/or small businesses that
typically have little or no access to capital markets.
HOW IT WORKS (EXAMPLE):
There are three general types of venture capital: seed capital, for ideas that
have not yet come to market; early-stage capital, for companies in their first or
second stages of existence; and expansion-stage financing, for companies that
need to grow beyond a certain point to become truly successful. Venture capital
can also help a company merge with or acquire other companies.

Although some venture capital comes from private individuals, most venture
capital comes from venture capital firms. These firms are often partnerships that
obtain their investment funds fromwealthy individuals, investment banks,
endowments, pension funds, insurance companies, various financial institutions,
and even corporations wishing to foster new products and technologies.
A venture capital firm must raise the money it needs to make investments in
new businesses. This fund-raising is typically done by circulating a prospectus
to potential investors who then agree to commit money to the fund. Once the
venture firm has enough commitments, the firm may begin collecting or
"calling" those commitments when it wants to make an investment. If and when


the venture capital firm invests all of the fund's money, or if it simply wants to
expand its investing activities, it may start another fund. Most funds have a fixed
life, meaning they must make their investments within a certain period (usually
about ten years). Venture capital firms may have several funds going at the same
time.
Typically, venture capitalists decide which companies to invest in by
reviewing hundreds of business plans, meeting entrepreneurs and company
managers, and performing extensive due diligence on investment candidates.
They are very selective because they are seeking opportunities in which their
investments will grow rapidly and provide a successful exit within a certain
timeframe. When they do make a decision to invest, venture capital firms
typically purchase a company's preferred stockand/or lend money to the
company.
An important part of a venture capital investment is the exit, or the venture
capital firm's plans for selling its investment in a company. Usually the exit, also
known as the harvest, takes place anywhere from three to ten years, often via an
initial public offering or through the merger or sale of the company.
Venture capital is an important and necessary form of investment because it

fosters entrepreneurship, especially in high-tech and other innovative industries.
This in turn promotes job creation and economic growth. At the investment
level, venture capital can be tremendously lucrative because it allows investors
to get in at the ground level of what could be some of tomorrow's leading
companies.
However, venture capital is not without risk. In fact, it is one of the riskiest
investments available because many new companies fail or underperform.
Venture capital firms anticipate this by diversifying their investments and
hoping that their successful investments more than compensate for their losses.
Nonetheless, venture capitalists must be willing to take significant long-term
risks for what can be high returns.
Advantages
• Business expertise: Aside from the financial backing, obtaining venture
capital financing can provide a start-up or young business with a valuable source


of guidance and consultation. This can help with a variety of business decisions,
including financial management and human resource management. Making
better decisions in these key areas can be vitally important as your business
grows.
• Additional resources: In a number of critical areas, including legal, tax and
personnel matters, a VC firm can provide active support, all the more important
at a key stage in the growth of a young company. Faster growth and greater
success are two potential key benefits.
• Conections: Venture capitalists are typically well connected in the business
community. Tapping into these connections could have tremendous benefits.
Disvantages
• Loss of control: The drawbacks associated with equity financing in general
can be compounded with venture capital financing. You could think of it as
equity financing on steroids. With a large injection of cash and professional—

and possibly aggressive—investors, it is likely that your VC partners will want
to be involved. The size of their stake could determine how much say they have
in shaping your company’s direction.
• Minority ownership status: Depending on the size of the VC firm’s stake in
your company, which could be more than 50%, you could lose management
control. Essentially, you could be giving up ownership of your own business.
The followed by your presentation Ngoc
Credit card
The following, I will tell you one more way to have more financial resources
for the activities of your company. That is to use a credit card.
If you have good credit - is the easiest way to get money to start a business.
Credit cards are a form of substitute for direct payments. This form of payment
is made based on reputation. Cardholders do not have to pay cash when buying.
Instead, the Bank will advance the money to the seller and the cardholder will
pay back to the bank transactions. Credit cards allow customers to "pay down"
the amount paid in the account. Credit cards are issued after the service provider
approved by the approved credit card account, then the cardholder can use it to
make purchases at the point of sale to accept cards. So, equipment, suppliers,
advertising and postage (for mailings) can all be purchased with a credit card.


And if your credit card gives you a line of credit, you can give yourself an
instant loan (up to your credit limit).
But using a credit card to start your business bears some significant risk, too.
ATM card, you are spending your cash available in it. Conversely, when paying
by credit card, you are spending substantially equal amount of bank borrowing
before. If you're not careful you can quickly run up a huge credit card bill - a
bill you'll be responsible for paying whether your business is successful or not.
Therefore, you should only spend with a credit card to make sure your money
that will be refunded during the month. If not, you will stick deep into debt.

So be careful when using credit cards as a source of financing for your
business offline.
Now is your presentation Nam
Banks
Banks can be a little tricky when you are trying to attain a small business
loan. Each bank operates differently and policies will differ. Banks may be one
of the first sources that come to mind when you begin searching for a small
business start up loan. The great thing about banks is that they have money
available to lend.
However, it may be difficult for a new business to get a loan from a bank
since lenders usually prefer to lend to established businesses. Of course, not all
banks look at it this way. I suggest you approach your bank and get to know the
commercial banker. From a banking stand point, it gives them more confidence
when they are dealing with someone they know. Remember, you need equity to
leverage a small business loan. The equity can be in the form of cash,
investments, and tangible collateral such as vehicles, land and buildings. If you
don't have a dime to your name and you don't own anything, it's going to be very
difficult to get a loan.Also remember you need a good credit rating. If you don't
have a clean record, banks simply won't take you seriously. I'll describe the
credit process in more detail below.
The final part is being presented by Thanh My
Insurance Companies
Currently, the loans from the insurance companies are no longer so new. This
form of loan is quite popular. And the procedures and conditions for borrowing


increasingly simplified

meet the requirements of customers and help the

transaction to take place smoothly and quickly.
When starting a new business, you should borrow from the insurance
companies as an individual. There are two major forms of the loans from the
company: borrowing unsecured loans and borrowing secured loans (mortgage
loans). But now, in Vietnam, the form of borrowing unsecured loans is
increasingly popular due to the ease and quickly. Borrowing unsecured loan is a
loan without collateral assets based on where you purchased the contract takes
effect one year or more of any insurance company as of the present time. The
bank approved loans based on life insurance premium amount that customers
play every year. You can participate in insurance premiums on a monthly,
quarterly or annual basis, it depends on you. And after an interval of your
premiums will be charged interest at the interest rate of the insurance companies
and you can get to use any gain or not. After at least a year, the insurance
company will sign a contract with your mortgage loan if you have demand for
loans. At the same time, lending rates are also similar to banks but with lower
interest rates than banks. In Vietnam currently only two companies that VP
Bank and Prudential Finance to support borrowing unsecured loan banks.
Any form of public loans are also the advantages and disadvantages of it, and
for the form of loans from the insurance company and not the exception
Advantages:
-

Conditionality simple: the citizens from 21 to 60 years, life insurance

plays in a year, to work or self-employment wage, minimum premiums as 2
million VND/year.
Procedures and records simple: mainly copies of ID, copy of
household or KT3, copies of contracts of life insurance and the nearest
border fee's. On the other hand, you can conduct transactions at home or
through the insurance company's website there.

In the form of mortgage loan under life insurance are favored banks
should support the disbursement rate in this method is very high. Customers
can borrow up to 100 times more detailed than the monthly cost of closing


simultaneously with preferential interest rates extremely with 1.66% for all
customers.
Additionally, you can also enjoy the special treatment program from the
insurance company ...
Disadvantage:
Because it takes at least a year to pay the premiums for the company to ensure
that loan conditions so it is difficult for people who need money immediately.

Conclusion
So, money is the lifeblood of business, a company does not have money like a
spot-no blood, or a car without gasoline, it is an important resource that a
company should have to promote all potential heavy.
Financial intelligence is the ability you can think of how many different
financial solutions to manage a problem.
Money is the lifeblood of your company, although all of us should go into
business with the desire to be doing things that you enjoy and make a difference
for the people we serve, the money still is something not to be missed here is the
problem we always need management and due attention to achieve success.
Robert Kiosaki stressed so many times in the famous book "Parenting
enrichment Episode 1" on the importance of financial intelligence in the process
of doing rick. If be lucky and make more money without to overwork, forcing
you to financial intelligence. With ambitious entrepreneurship, raising capital is
one of the important issues need to be resolved first.
Along with the business idea that is always a key factor in the process of
starting a business. Moreover, funding is like a journey solve complex, both

legal again both artistically. How to raise funds most effectively? The following
tips can be the manual on your entrepreneurship journey.
We’ve finished our presentation. Do you have any questions about our topic?
All comments are welcome. Thank you