Essay, Pages 2 (442 words)
For the business cases which have to invest for a new business with 5 million US dollar, obviously it is enough to start a business with an option of capital investment. This is already a good amount of money to start a business with a portfolio that would only covers local business to start. Capital investment strategy because the money can earn interest in a bank or any investment partners while having the potential to earned profit in its initial operation, most especially if the business is well studied to really gain early in its start.
Secondly, one potential business that can start with this amount is IT product distributors and services. These days information technology continues to grow and many large scale and global businesses in IT cannot anymore handle strategic locations which is highly potential for small to medium size business owners. This is highly potential because it is not only competitive but also it has a large market where it can create respectable returns in its early years only if managed properly.
In this paper, it was clear that creating or developing a business financial strategy is not just a study in the work flow of the business of how it can be a potential investment for any investors in a certain period of time; instead it is also a study of business options. Like in this paper the concept of business partnership and capital investment are just two of the most commonly used strategies to take.
That is why in the business case that was expected to be addressed in this paper which is starting a business with a 5 million dollars investment, it was very clear that the strategy that is best fit for it is capital investment.
The main reason here is that it does not only gives better financial management because single business owner is running the business but also would also provide positive financial returns through interest and potential profit in the early years of the business. Reference Capital Investment Company-Finacial Investment-Investment Funds. (n. d. ). ClearLead Inc. – e- Articles. Retrieved January 08, 2009, from http://www. clearleadinc. com/site/Investment_capital. html Structured Portfolio Strategy. (n. d. ). InvestorWords web site. Retrieved January 9, 2009, from http://www. investorwords. com/4787/structured_portfolio_strategy.
html Tarantino, d. (2003). Strategic financial decision making is key to project support – Nuts and Bolts of Business. BNET. Retrieved January 9, 2009, from http://findarticles. com/p/articles/mi_m0843/is_4_29/ai_105542625 Types of Partnership. (2008). FindLaw – For Small Business. Retrieved January 9, 2009, from http://smallbusiness. findlaw. com/business-structures/partnership/partnerships-types. html Wacker, W. (2004). Information is King…and Other Trends. Small Business Trends. Retrieved January 10, 2009, from http://www. smallbiztrends. com/2004/07/information-is-kingand-other-trends. html/