Economic Essay

1079 WordsMay 13, 20155 Pages
The start up business I am going to talk about is a snack van takeaway business. The philosophy behind a snack van is in order to provide a quick and easy on the go snack business for people who want a quick snack whilst on the go. The idea of a snack van does work, the food needs to be good quality and prices need to be reasonable. By having a snack van there is an advantage of moving from places to places and to places where there are often more people at a certain location as there would be somewhere else. In order to start up a snack van business involves finance. In any business finance is the backbone to a businesses success and worth. There are two types of finance when talking about business, there is internal finance and external finance. Internal finance is receiving funds from a company’s operating activities, as opposed to borrowing money from a bank or through means such as issuing equity or debt. A company with a strong business and solid sales is able to raise funds internally to fund new projects or initiatives. External finance is obtaining funds that come from outside an organization. External sources of finance might include taking on new business partners or issuing equity or bonds to create long-term obligation, or commercial paper to take on shorter- term debt. These two finances that I have given a brief definition I will now talk about how these sources of finance will be relevant in order of making my start-up business a success. Internal sources of finance for my snack van start-up business. In order to get my snack van started I need to have a van in order to tow around so it is accessible to cook food for customers. Internal finance can come into play here by all of the profit and money I have saved before myself I can buy a van for around £20,000. This saves me from using external finance and having to go to a bank and ask for

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