Respuesta :
After formulated a line of green cleaning products and tested it with sales to local commercial entities, Karen now is ready to seek money to place the produc in stores and interested to look for the next financing stage which is start-up financing (B).
Financing and raising money to start a business is not an easy matter. Financing for start-up is risky and more challenging. Because unlike mature business who already has assets for collateral and known cash flow to attract investors and lenders, start-up has none of it. Start-up needs money from the early stage for product and market researches puproses and expanding stage.
Financing for start-up could be categorized into 5 stages:
- Seed financing
- Pre-launch financing
- Start-up/launch financing
- Growth financing
- Maturity/exit financing
Seed financing is a concept stage where a start-up prepare the products and held researches related to the products and its targeted market. Start-up has to do feasibility studies, develop prototypes, evaluate market potential, protect its intellectual property if any, and investigate other aspects related to the business idea.
Pre-launch financing occurs when a star-up with a ready product build a detailed business plan and validate its concept, defining the market and developing the products.
Start-up or launch financing happens when the product is ready to be officially launched to the market. Start-up at this phase will focus on introducing the products and ramping up production and sales
Once a product has been accepted by the market successfully, Start-up will look for growth financing to support it to expands its reach. Start-up will look for fund to reach its targeted growth.
Maturity financing occurs when a start-up become matures and has expansion opportunities. A start-up may approach this stage by undertake an initial publich offering (IPO), or obtain bank debt financing.
Learn more about Financing Stages here: https://brainly.com/question/29360073
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