Introduction to Raising Finance for Businesses

The video explores why businesses need to raise money, focusing on essential and non-essential expenses. It discusses personal wants and needs, comparing them to business financial requirements. The video outlines three main situations where businesses require finance: starting up, growth, and survival. It details the financial needs for starting a business, expanding operations, and surviving economic downturns, emphasizing the importance of finance in business strategy, management, marketing, and operations.

Why do businesses need to raise money?

• To pay for essential and non-essential expenses

• To avoid paying taxes

• To reduce employee salaries

• To eliminate competition

What are some initial costs when starting a business?

• Buying a car

• Renting premises and paying staff wages

• Investing in stocks

• Purchasing luxury items

How can businesses manage increased costs during growth?

• By increasing product prices

• By cutting marketing expenses

• By reducing the number of employees

• By sourcing additional finance

What role does finance play during an economic downturn?

• It eliminates the need for strategic planning

• It reduces the need for marketing

• It allows businesses to survive by providing necessary funds

• It helps businesses expand rapidly

Why is finance considered central to business operations?

• Because it supports strategy, management, and operations

• Because it is not important for small businesses

• Because it is the sole responsibility of the CEO

• Because it is only needed for marketing