Management

1. Department of Management Studies
Master of BusinessAdministration, MBA
(Online Class, 1stBatch)
Skills for Financial
Sources
Presented by : Group – D(2)

2. Group - D(II) Candidates List
No Roll No Name
1 1mba 008 Mg Chit Win Htut (Co-Leader)
2 1mba 070 Ma Shwe Sin Aung
3 1mba 075 Mg Soe Win Aung
4 1mba 080 Mg Thant Zin Aung
5 1mba 081 Mg Thaw Zin Oo
6 1mba 086 Ma Thiri Nway Nway
7 1mba 088 Ma Thu Zar Aung
8 1mba 094 Mg Wai Zin Tun
9 1mba 100 Mg Zaw Min Oo
10 1mba 104 Mg Zin Min Tun
2

3. Question: What personal skills do you need to keep your financial backers feeling confident in your new business?
Which skills are most useful when you’re dealing with more informal financial sources, such as family
and friends, versus receiving funds from stockholders, a bank, or a venture capital firm?
Would these considerations affect your financing strategy?
 Personal skills to keep financial backers feeling confident
 Informal financial Sources & Skills for dealing with
 Formal financial sources & Skills for dealing with
 Conclusion
Presentation Content
3

4. Personal skills to keep financial backers feeling confident
4
1. Financial Acumen : Explain your revenue streams, expenses, and projections
convincingly.
2. Transparency : Be open and honest about the company's financial health,
challenges, and progress.
3. Vision and Strategy : Clearly articulate long-term vision and outline the strategies to
achieve goals.
4. Responsible Risk : Demonstrate the risks involved in the business and have plans in
place to mitigate them.
5. Networking skills : Build and maintain relationships . A strong network can open
valuable insights.
Management

5. Draw up a business plan to keep Financial backers feeling confident in new business:
5
 Demonstrate a well-defined, compelling vision that creates an air of
excitement.
 Provide clear and realistic financial projections.
 Profile potential customers and target market.
 Include detailed information about the industry and competitors.
 Provide evidence of an effective entrepreneurial management team.
 Highlight critical risks that may threaten business success.
 Spell out the sources and uses of start-up funds and operating funds.
 Capture the reader’s interest with a killer summary.

6. 6
Two Primary Sources of Capital

7. • Trust and Flexibility
• Simplified process
• Lack of Collateral requirement
• Will be flexible
• Low-interest rate
Informal financial Sources (Family and Friends)
 Strained Relationships
 Limited Capital
 Risk of Loss
 Social Awkwardness
 Opportunity cost
7
Advantages
Disadvantages

8. Skills for Dealing with Informal Financial Sources
8
Transparency and Communication
Formal Agreements
Professionalism
Risk Mitigation
Relationship Building
Clarity on Terms
Conflict Resolution
Appreciation and Gratitude
Emotional intelligence
Trustworthiness

9.  Larger Capital Access
 Expertise and Guidance
 Reduced Personal Risk
 Long-Term Partnerships
 Brand Recognition
Formal financial Sources (Stockholders, Banks, Venture Capital Firms)
 Longer Decision-making Process
 Stringent Criteria
 Equity Dilution
 Interest costs
 Collateral requirements
9
Disadvantages
Advantages

10. Skills for Dealing with Formal Financial Sources
10
Negotiation Skills
Relationship Building
Financial Literacy
Risk Management
Time Management
Compliance and Transparency
Business Acumen
Communication skills
Resilience
Strategic Thinking

11. Conclusion
 These considerations affect Financing strategy.
 Debt Financing : Borrowing money that has to be repaid at a later date to start a business is referred to
as debt financing. One common source of debt financing for a start-up is to borrow from family and
friends. Increasingly, entrepreneurs are using their personal credit cards as a form of debt financing.
 Equity Financing : Equity financing consists of funds that are invested in exchange for ownership in
the company. Any monies invested by the business owners or by those who purchase stock in a
corporation is considered equity funds.
11

12. 12