• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Describe the advice and nance available for a business considering expansion and growth.

Extracts from this document...

Introduction

Transfer-Encoding: chunked I am working for Hounslow Chamber of Commerce as a trainee manager. The Hounslow Chamber of Commerce provides advice to existing businesses and to entrepreneurs seeking to set up their own businesses. Small businesses that are successful can expand and may change their structure and status in order to attract necessary investment. I will provide a guide describing the advice and finance available for a business considering expansion and growth. I will be including, general advice on when and how expansion might be achieved using relevant examples. Sources of finance for growth and the possible relevance of various financial transactions, such as spot and forward foreign exchange dealings, currency options, financial futures and securities. When expanding a business, it?s important the entrepreneur decides the best time to do so in order to be successful. Firstly, the most important factor to consider when expanding is if the business is profitable; the business should only consider expanding if they have been making profits over a period of time. Secondly, the business will need to do detailed market research. It?s important for the business to complete research as it will tell them if expanding will be reasonable; perhaps their products are at a high demand which would encourage the expansion. Furthermore, research will also show them the state of the economy. ...read more.

Middle

In general, an investment bank's clients are institutional investors, but high net-worth individuals also use them. Another place to go for advice is a finance house. Finance houses are a financial institution that lends money to people or businesses, so that they can buy things such as cars or machinery. Finance companies are often part of commercial banks, but operate independently. Or you can gain advice from mentors. Mentors are experienced individuals who can give you advice and guidance. In addition, you can get advice from the three different types of FTSE. FTSE stands for financial time?s stock exchange. If a business is considering expansion they can make use of FTSE to see what company to invest in. FTSE 100 index is an index of the share prices of the 100 largest companies. FTSE 250 index is an index of medium-capitalized companies not included in the FTSE 100 Index. It starts from the 101st to the 350th company listed on the London Stock Exchange. Lastly, there is FTSE 350 index which is a market capitalisation weighted stock market index incorporating the largest 350 companies by capitalisation which have their primary listing on the London Stock Exchange. Another way to expand is to use public equity. This is capital raised from the owners that can be invested in a public limited company. ...read more.

Conclusion

Using this service means you can get the money straight away but they charge a fee to use it. Financial support is available for businesses that are trading internationally. One type of support is forward foreign exchange. This is an agreement to purchase or sell an amount of foreign currency at a future date at a predetermined price. Or use spot foreign exchange which is a contract to exchange two currencies at an exchange rate agreed today. Then there is derivative which is an agreement between two parties that has a value, based on expected future price movements of the asset to which it is linked-called the underlying asset such as a share or currency. Examples are currency options and financial futures. Furthermore, there is currency options. This gives the owner the option the right to buy or sell the indicated amount of foreign currency at a specified price before a specific date. Lastly, there are financial futures which is contract to buy or sell a financial instruments (treasury bills, certificates of deposit and foreign currency) at a specific future date and at a specified price. In conclusion, if the entrepreneur thinks carefully about when and how they will expand they will be successful. They can also gain extra help from institutions in which provide specific help tailored to them and can pick the best finance to help them achieve the expansion. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Market entry strategy of Aldi and Lidl. Plans for expansion.

    in the USA or on Lidl restricting their expansion in particular European countries till 2009. Strategy decision-making depended on company's targets , planning and volume of expansion . Aldi and Lidl are competitors so it was obvious that these two companies would try to differ their strategies in different ways.

  2. Small Business Strategies - identifying the target market, necessary skills, plans for development and ...

    Segmentation also helps in identifying and refining new products as well as improving customer service. All this important as it allows the business to build and develop a good relationship with customers by developing and offering them the products and services which they require which really helps in increasing consumer loyalty.

  1. The main purpose of this research is to know and analyze whether the Olympic ...

    research method could be utilized to imagine and identify the genuine hypothesis which can be used to solve the research problems. In this research method the numerical measurements are been utilized which are in the form of the graphs as well as the charts and this specific research methodology could

  2. How Evans Enterprise party and wedding planners could use IT to help manage their ...

    The manager cannot get the work done from employees unless they are communicated effectively of what he wants to be done? He should also be sure of some basic facts such as how to communicate and what results can be expected from that communication.

  1. Disneyland and M&S. I am going to investigate customer service in two separate ...

    and they can also purchase low priced Marks and Spencer food to eat during this break. This would be a major incentive for Marks and Spencer to entice employees into the company and as the wants of the internal customer have been met and exceeded it is very likely that

  2. Explain the sources of initial nance, that need to be taken into account when ...

    Legacies is another way they can gain cash to start up the business. Legacies is when someone leaves you money in a will. This money is risk free as you don?t have to pay it back with interest. Yet alike to the previous ways to gain finance, once all the

  1. Analyse the guidance, advice and support available to a business to consolidate its operations ...

    However, the business should be aware that when changing the structure means a change in liabilities. For instance, sole traders have unlimited liability which is when, if your business becomes bankrupt the owners personal assets are sold to pay it off.

  2. Analyse the guidance available to a potential business to ensure a successful start up ...

    Furthermore, a business plan can help obtain finance. When the business is asking for a loan, the business manager will ask for the business plan, if they don?t have one they won?t get any finance. If there is no business plan many problems may arise for the business owner.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work