Many people who hail from the USA have made it big in different fields of study all over the world. John C. Howell is one such man who has made himself into a successful world renowned finance entrepreneur. He is a person with passion for both technology and finance and hence he can come up with some amazing solutions to the world’s most complicated business problems.
Entrepreneurial finance is a field of study which teaches how to value resources and allocate them for new business ventures. It helps to understand how much money is needed for starting the business and how it should be raised. People learn to value the startup of the business along with the financial decisions for exiting from the venture.
Investors are the most important part for starting a new venture. Investors can be one of the employers, a bank or public stock. The control and management of the investors should be understood before using them for the business. There are a certain problems that the investors may pose on the entrepreneurs.
Investors may have a doubt or uncertainty about the success of the business.
Not all information related to investments may be shared by the business dealers with investors.
Investors may not accept to fund for the business if they are presented with soft assets.
Volatility of the financial market can cause fluctuations in the profits of the business.
The entrepreneurs who are trained in this field will plan the finances by estimating the amount of money needed to start and manage the business. They will have to research and decide if the business is worth investing in, with respect to time and money. The cash burn rate for the working of the business should be calculated and documented. The techniques have to be developed in order to reduce the dilution which may be done by the external investors. The entire business scenario from the start till exit should be analyzed. The contingency plan is developed by these entrepreneurs. When there are no trained finance entrepreneurs in the company, the chief financial officer takes up the responsibility of the entrepreneur.
As the company grow, the strategies and the financial planning changes accordingly. Each venture would require different investors for its capital. Every step and strategy has to be planned by the entrepreneur for maximum profit of the business. Projected growth and sales has to be achieved within the budget planned by the finance entrepreneurs.
John Howell became a successful finance entrepreneur by taking up a strategic role which not only evaluates the financial plans for starting and running of a business but also identifies the milestones and develops innovative strategies for reaching that milestone within the budget.