Factors that need to be considered before fueling fresh fund in to your business..

Whenever we plans to set up a new venture, need to populate several other essentials like source of raw materials, financing options, labour forces, markets capitalisation, organisation structure etc. All these aspects requires a detailed review before comencing the business. However, among all these, the first & foremost concern should be placed in comprehenive project analysis & accordingly adopting appropiate capital budgeting technique.

Project analysis asks for selection of most appropiate project among several alternatives. Here, an entrepenure effectively analyse the viability of a project in terms of cash flow pattern, inflationary impact there on, estimated project duration, trend of such flow, initial capital requirements etc. Let's have alook what are the factors influence in capital budgeting decisions.

As we all know capital is the back bone for every business, need to take proper care of such right from the day of investment. Hence, before taking any financing decision, we need to consider the available options, cost of such each source of finance, relative tennure of investment, the extent of obligations & repayment procedure along with expected return upon invested capital.

In my following article, we will have a detailed discussion upon both these analytical aspects.