Financing Business Initiatives

Object Required

INTRODUCTION

Principle

Target segment benefits and attractiveness:

Theory

In the present era, in the finance domain field, corporate finance plays a very crucial role as it is most important part of this mentioned field. The corporation is facing the issue related to insufficient finance so it directly affecting the daily operation of business. In order to overcome this financial issue, corporation decided to take the fund from venture capital which is most important source of finance. By this source of fund, company can raise huge amount of fund for business. The following project report provided depth knowledge and understanding about the various finance evaluation methods and its implication within the business enterprise. In addition to this discounted cash flow method has been addressed in this report in order to compute the fair value of share. In addition to this venture capital valuation method has been systematically used in this project so as optimum solution can obtain by the business firm.

Target segment benefits and attractiveness:

Greenewit is the one of the firm that is operating in the energy sector and providing services to the multiple entities like customers and government utility firms. Currently, major target group of the business firm is the local utility firms and it is providing consultancy services to same in respect to implementation of the energy efficiency programs. Quick home energy checkup program is one of the campaign that is run by the government in the current time period. Under this Greenewit is installing energy efficiency equipment’s in the homes without taking any additional charge (Dhaliwal and et.al., 2011). Customers or general public are also the target customer of the business firm. Presently, firm is guiding them in respect to changes that can be made in the home in respect to improving energy efficiency. Guidance that is provided by the business firm to the people lead to huge energy efficiency in homes, durability, safety and lower amount of energy bills.

It can be said that Greenewit is reaching to the general public and is providing benefits to them by giving proper guidance. It can be assumed that firm portfolio of services is very huge. Private sector firms are also the main target customers of the business firm. Under this Greenewit is providing energy related services to the buildings and apartments. Under this relevant system is evaluated, lots of things that can be practices by relevant employees at workplace to save energy is communicated to them and operator training program is also conducted to ensure that relevant individuals are properly trained and can save energy where it is possible to do in the business firm (Li, 2010). Separate training programs are conducted for the employees of the utility firm and under this training is given to them about the way in which they can make people understand about the way in which they can manage energy cost and consumption.

Market attractiveness: Market attractiveness is the one of another factor that heavily influence the business firm. On evaluation of the energy sector it can be said that relevant market is attractive in nature. As demand for the energy is increasing in the market and due to this reason related services demand also increased in the market. Currently, one of the major problem that almost all nations of the world faced is that energy is less produced but its consumption is increasing at rapid pace. Population of the nations is increasing and due to this reason consumption of same also elevate but production is not increasing at same pace. Thus, there is a huge need to save energy. Government is running varied campaigns to make people aware about energy efficiency and make them habitual to do same at their home. Thus, there is a huge earning revenue opportunity in the market (Damodaran, 2012). By capitalizing opportunity in the market firm can earn good amount of revenue and due to this reason it can be said that market is very attractive.

Conclusion

CONCLUSION Finance plays a very crucial role in the business venture and in the absence of sufficient fund no firm can survive its business activities and function. From this project report it has been concluded that valuation method is most effective tool in the finance field which aid to firm for compute intrinsic value of share. In addition to this in this project discounted cash flow models and venture capital valuation method has been successfully implemented. These methods has assisted to firm in taking decision related to business activities and functions. Reflective statement From the above project, I have gained various kinds of knowledge and idea about the financial methods and techniques. From this project I have analyzed that finance plays a very crucial role for every business enterprise which assists in every activities and action of business. Corporation required sufficient quantity of fund to carry out the business in the market. I have learnt that there are various sources of finance like venture capital, bank loan, retained earning etc. From this project, I have gained the effective knowledge about the venture capital and its implication in the business. I have chosen venture capital for obtain the finance for business activities. However, the major issue with venture capital is that growth rate of cash flow. In addition to this from this entire session, my interpretation and calculation skill has also improved because I have used various methods of calculation to attain the right value. In this entire project, various method has calculated such as discounted cash flow, valuation method etc. Furthermore, I used cash flow at the rate at which I founded this is most suitable and realistic method. But in this manner, growth rate of cash inflows was wrong and modification in same were required. Moreover, I have carried out various stages of dialogue with the venture capital firm. I have to present some valid logic in front of the panel of staff which are working in the venture capital firm. Thus, it can be said that from the entire project of finance, I have successful understand the various method of finance and use the information to solve the issue of the business unit.

Published Date

17 Jun, 2018