Running head: STARTUP FUNDS 1 Startup Funds 4 Startup Funds and Working Capital Strategy Phabian Smith BUS 313: Introduction to Entrepreneurship Professor Talil Abrhiem May 16, 2019 Startup Funds and Working Capital Strategy In order for any business to start and be competitive there is need to develop an effective business plan that will incorporate diverse aspects of how the business will operate, it’s customers, market, supplier, location, employees , source of capital and products or services among other aspects. Startup funds are the resources or fund required to start up a new business. This is the cost of renting officers, buying new machines, stationaries, legal cost, first consultation, permit, inventory, product development and manufacturing, marketing or any other expense. Working capital is the resources that the organization utilize in their day to day activities to sustain the operations (Nguyen, Tran, & Nguyen, 2016). This can be calculated by taking current asset minus current liabilities. The working capital can indicate that the given business has adequate short-term assets. Adequate working capital is vital in ensuring the organization can sustain their short-term objectives. Method of obtaining funds for my business There are various strategies or methods of collecting capital in the business and they include; · Loans from financial institutions family and friends- the organization can get loans or money from friends and financial institutions like bank, Sacco and microfinances. · Personal saving is another form of getting funds to startup the business. A person can save in Sacco and banks among others (Pesonen, 2017). · The use of credit card scorecard can help in getting funds. Credit card can get you out of the occasional jam and even extend your accounts payable period to shore up your cash flow. · Attract an Angel Investor- This are investor who are willing to invest in the given organization. The budget and proposal are the effective communication procedure where one put the business knowledge in the proposal, the vision, mission and goals. References Nguyen, H. C., Tran, M. D., & Nguyen, D. T. (2016). Working Capital Management and Firms¡¯ Profitability: Evidence from Vietnam¡¯ s Stock Exchange. International Journal of Economics and Finance, 8(5), 55-62. Pesonen, M. (2017). Impacts of public funding on firm performance-A case study on the sources of public business funding. Running head: BUSINESS MODELS 1 BUSINESS MODELS    3 Assignment 1: Business Models BUS 313: Introduction to Entrepreneurship Phabian Smith Strayer University April 20, 2019 The three-business model often used by organizations are Bricks and Clicks model, Bait and hook model and the last is subscription business model. Subscription business model is where an organization charges its clients a fixed monthly fee for the services or goods provided. Bricks and Clicks model is a business model used by fir.

1. Running head: STARTUP FUNDS
1
Startup Funds
4
Startup Funds and Working Capital Strategy
Phabian Smith
BUS 313: Introduction to Entrepreneurship
Professor Talil Abrhiem
May 16, 2019
Startup Funds and Working Capital Strategy
In order for any business to start and be competitive there is
need to develop an effective business plan that will incorporate
diverse aspects of how the business will operate, it’s customers,

2. market, supplier, location, employees , source of capital and
products or services among other aspects.
Startup funds are the resources or fund required to start up a
new business. This is the cost of renting officers, buying new
machines, stationaries, legal cost, first consultation, permit,
inventory, product development and manufacturing, marketing
or any other expense.
Working capital is the resources that the organization utilize in
their day to day activities to sustain the operations (Nguyen,
Tran, & Nguyen, 2016). This can be calculated by taking
current asset minus current liabilities. The working capital can
indicate that the given business has adequate short-term assets.
Adequate working capital is vital in ensuring the organization
can sustain their short-term objectives.
Method of obtaining funds for my business
There are various strategies or methods of collecting capital in
the business and they include;
· Loans from financial institutions family and friends- the
organization can get loans or money from friends and financial
institutions like bank, Sacco and microfinances.
· Personal saving is another form of getting funds to startup the
business. A person can save in Sacco and banks among others
(Pesonen, 2017).
· The use of credit card scorecard can help in getting funds.
Credit card can get you out of the occasional jam and even
extend your accounts payable period to shore up your cash flow.
· Attract an Angel Investor- This are investor who are willing to
invest in the given organization.
The budget and proposal are the effective communication

3. procedure where one put the business knowledge in the
proposal, the vision, mission and goals.
References
Nguyen, H. C., Tran, M. D., & Nguyen, D. T. (2016). Working
Capital Management and Firms¡¯ Profitability: Evidence from
Vietnam¡¯ s Stock Exchange. International Journal of
Economics and Finance, 8(5), 55-62.
Pesonen, M. (2017). Impacts of public funding on firm
performance-A case study on the sources of public business
funding.
Running head: BUSINESS MODELS
1
BUSINESS MODELS
3
Assignment 1: Business Models
BUS 313: Introduction to Entrepreneurship
Phabian Smith
Strayer University
April 20, 2019
The three-business model often used by organizations are Bricks
and Clicks model, Bait and hook model and the last is
subscription business model. Subscription business model is
where an organization charges its clients a fixed monthly fee for
the services or goods provided. Bricks and Clicks model is a

4. business model used by firms that operate offline and online
business transaction to meet the needs of their customers. Hook
and bait model are a system where the organization uses low
price and gifts to attract and retain their customers. The model
ensures that the prices offered by the organization are lower
than the market prices to convince the customers to buy from
them (Baden-Fuller & Morgan, 2010). Various organizations
use different models depending on their goals in conducting
business.
The tax preparation businesses use subscription business model
because of various reason. The tax preparing businesses offer
the same services to the customers that do not change their
prices; the fixed prices allow the businesses to offer the
services to the firms and individuals for a given period then
payment is made for the whole period. Some of the firms also
use the business because of the upfront payment made by the
customers thus assuring the businesses that they will get profit
at the end of the finance period because of lack of bad debts.
The model helps the business to reduce bad debts by terminating
the contract if the subscription is not renewed. The model helps
in retaining customers since the subscription is made before the
service are delivered (Weinhardt, Anandasivam, Blau & Stößer,
2009). The customers are likely to stick with the firm offering
the required services for long. The last reason for the use of the
model is the assurance of the continuity of the business because
of the upfront payment made by the customers.
References
Baden-Fuller, C., & Morgan, M. S. (2010). Business models as
models. Long range planning, 43(2-3), 156-171.
Weinhardt, C., Anandasivam, A., Blau, B., & Stößer, J. (2009).
Business models in the service world. IT professional, (2), 28-
33.

5. Running Head: TARGET MARKET SEGMENT 1
Target Market Segment 2
The Target Market for Tax Preparation Business
Assignment 2: Target Market Segment
Phabian Smith
Professor Dr. Talil Abrhiem
BUS 313: Introduction to Entrepreneurship
May 5, 2019
The Target Market for Tax Preparation Business
Target market is a group of people comprising of potential
customers a company or an organization targets its products and
marketing efforts. In this case, the target market will be
working individuals who are financially stable and in their early
working age. The primary market is a segment of the
marketplace that is strategic for selling its products and services
(Castles, 2010). In many cases, primary target markets include a
group of customers who can buy products directly from the
business.
In the primary market segmentation, factors that favor the
selection of the segmentation are the small size of the segment
which hence represents the number of customers, the growth
rate of the segment, and the level of competition in the segment
(Stephen, 2010). The Primary market segment is characterized

6. by a small number of potential buyers of the products and the
growth rate of the segment is usually low. The competition in
the segment is not intense as compared to that in the secondary
market segments. It is due to these factors that the primary
target market is favorable.
The secondary target market has simply defined a market where
investors buy and sell securities and products that they already
own. While choosing a target market that will be used to market
the goods and services of a company, the secondary target
market requires one to consider the age, location, and income
levels of the target market. Before settling on a specific
secondary marketing strategy, managers should consider the age
of their product customers. This enables them to estimate the
number of potential customers in a market and businesses can
meet the needs and requirements of the population. The
distribution and the amount of income are also key in choosing
the secondary target market of an organization. This is because
companies can estimate the possibility of people in a given
market to buy their goods and services. The location of
customers in a secondary market also enables a company to
determine the level of distribution of its customers in a given
market.

7. References
Castles r, G. M. (2010). The functions of distribution strategies:
modern distribution channels in relation to goods and
services
Stephen, D., Khoo, H. M., & Powers, C. (2010). Situated
learning in cross-functional virtual teams. Technical
Communication, 47(1), 51-66.
Running head: BUSINESS MODELS

8. 1
BUSINESS MODELS
3
Assignment 1: Business Models
BUS 313: Introduction to Entrepreneurship
Phabian Smith
Strayer University
April 20, 2019
The three-business model often used by organizations are Bricks
and Clicks model, Bait and hook model and the last is
subscription business model. Subscription business model is
where an organization charges its clients a fixed monthly fee for
the services or goods provided. Bricks and Clicks model is a
business model used by firms that operate offline and online
business transaction to meet the needs of their customers. Hook
and bait model are a system where the organization uses low
price and gifts to attract and retain their customers. The model
ensures that the prices offered by the organization are lower
than the market prices to convince the customers to buy from
them (Baden-Fuller & Morgan, 2010). Various organizations
use different models depending on their goals in conducting
business.
The tax preparation businesses use subscription business model
because of various reason. The tax preparing businesses offer
the same services to the customers that do not change their
prices; the fixed prices allow the businesses to offer the
services to the firms and individuals for a given period then
payment is made for the whole period. Some of the firms also
use the business because of the upfront payment made by the
customers thus assuring the businesses that they will get profit
at the end of the finance period because of lack of bad debts.
The model helps the business to reduce bad debts by terminating
the contract if the subscription is not renewed. The model helps

9. in retaining customers since the subscription is made before the
service are delivered (Weinhardt, Anandasivam, Blau & Stößer,
2009). The customers are likely to stick with the firm offering
the required services for long. The last reason for the use of the
model is the assurance of the continuity of the business because
of the upfront payment made by the customers.
References
Baden-Fuller, C., & Morgan, M. S. (2010). Business models as
models. Long range planning, 43(2-3), 156-171.
Weinhardt, C., Anandasivam, A., Blau, B., & Stößer, J. (2009).
Business models in the service world. IT professional, (2), 28-
33.