Financial Strategies for Business Success

📋 Course Outline

1. Raising Finance Types
2. Internal Finance
3. External Finance
4. Factors Influencing Finance
5. Financial Planning
6. Sales Forecasting
7. Cash Flow Management
8. Managing Finance Ratios
9. Resource Management
10. Motivation Methods
11. Operations Management
12. Productivity and Quality

📖 1. Raising Finance Types

🔑 Key Concepts & Definitions

Internal Finance refers to funds generated within the business itself, without relying on external sources. It primarily includes retained profits, which are the profits kept in the business after dividends are paid out to shareholders, allowing the company to reinvest in its operations. Internal finance can also come from the sale of assets, specifically unused or non-core assets, providing an immediate cash injection. This type of finance is advantageous because it does not involve paying interest or diluting ownership, thus avoiding additional costs and loss of control. However, it may involve opportunity costs, as shareholders receive less profit when profits are retained rather than distributed.