Business Finance

Business finance

Business finance involves the raising and managing of funds by business organizations or start-up entrepreneurs. This will almost always require the creation of a long-term plan, a financial forecast, and finding multiple resources for capital.

Entrepreneurs seeking financing for their business must find the right balance in risk versus profitability. At the start-up phase, companies can seek loans from financial institutions, usually at high interest rates for first-time businesses, or get equity from private investors or business angels - affluent individuals who use their own funds, professional know-how and contacts to turn a solid business proposal into a running, developing company.

Once the business is off the ground and angel investors have seen a return on their investment, businesses will often turn to venture capitalists for further financing. These investors can offer greater amounts of money because funds are pooled from a firm or group of individuals. In return, venture capitalists usually own stock in their invested companies. This is very similar to how larger companies work after public offerings of their stock, where investors look at how reliable the business is before investing their own money in the company, thinking that the value of the business (and thus the stock) will be set to increase over time.

This branch of the Angel Investment Network (Midwest Investment Network) connects thousands of investors based inside the US and internationally, with entrepreneurs based in the Midwest US states (llinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin). This allows entrepreneurs the ability to generate funding for their business, while potential angel investors can find opportunities based near them.