Evaluation of Potential Sources of Fund for Bubbly Bakery

This report evaluates the potential sources of fund available to Bubbly Bakery and provides recommendations for appropriate sources of fund. It discusses personal investment, venture capitalist, and bank loan as potential sources of fund, highlighting their benefits and drawbacks. The report concludes with a recommendation for venture capitalist as the most suitable source of fund for Bubbly Bakery.

Bubblybakery.com

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK A...........................................................................................................................................3
Critical evaluation of potential sources of fund those are available to Bubbly bakery. Com.....3
TASK B...........................................................................................................................................4
Justification and recommendation of appropriate sources of fund..............................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................4

INTRODUCTION
Company requires lot of amount of capital in order to establish and operates business in
competitive market and meet customers expectancy. This report is about Bubbly bakery that is
one of the successful bakery in west London.
TASK A
Critical evaluation of potential sources of fund those are available to Bubbly bakery.
Com
Business in order to perform its different task and activities needs sufficient fund so there
are various potential sources of finance that can be used by Bubbly bakery. Com. Each sources
of fund have benefits and drawback that needs to be understood by manager before deciding
particular sources of fund that can be used for smooth operation of company. Such as:
Personal investment: It is most common method used by most of the entrepreneur to start and
run business and achieve their respective goals. Therefore, owner of bubbly bakery by using their
saving can contribute in effective operation of business (Mollick and Robb, 2016).
Benefits: It is one of the best, easy, quickly or convenient process to raise fund for business at
the same time no interest needs to be paid for capital.
Drawback: Its drawback is that owner may do not have sufficient fund to establish a business.
Venture capitalist: It is another source that can be used by bubbly bakery to raise fund as in it
external individual that have extra money plans to take equity positioning in firm in order to
fulfil their promise (Di Pietro Prencipe and Majchrzak, 2018).
Benefits: Bubbly bakery owner can easily raise huge amount of capital for business.
Drawbacks: They take high amount of interest rates to render money to individual and
ownership of business is also lost that negatively impacted business.
Bank loan: Bubbly bakery can also take loan from bank or financial institute for fulfilment of its
capital requirements and attainment of company objectives.
Benefits: It can be stated that bank are best and quick method of raising significant amount of
fund for enterprise.
Drawback: It involved lot amount of interest, time and efforts or security to get bank loan form
financial institution.
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TASK B
Justification and recommendation of appropriate sources of fund
From the above analysis of various potential sources of fund it has been founded that
company can make use of venture capitalist as they are always looking for technology driven
business or company that aims for higher growth. Bubbly bakery has use innovative technologies
to attract customers like it have made its official websites that bubbly bakery. com to establish
strong brand image and reputation in mind and heart of customers (Styhre, 2020). It is better than
other two options as may be the owner does not have enough saving to start or run business in
order to earn profit. It is can also be stated that venture capitalist is better than bank loan as in it
owner can get help, advice and knowledge e about the way business need to run and managed.
Thus, proper support and guidance helps owner of bubbly bakery to gain competitive advantages
in market.
CONCLUSION
It can be concluded that there are various sources of fund and the best sources depends
upon types of business and interest, preference of owners.
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REFERENCES
Books and Journals
Di Pietro, F., Prencipe, A. and Majchrzak, A., 2018. Crowd equity investors: An underutilized
asset for open innovation in startups. California Management Review, 60(2). pp.43-70.
Mollick, E. and Robb, A., 2016. Democratizing innovation and capital access: The role of
crowdfunding. California management review, 58(2). pp.72-87.
Styhre, A., 2020. In the Venture Capital Market: Raising Funds and Dealing with Investors and
Financiers. In Indie Video Game Development Work (pp. 153-183). Palgrave
Macmillan, Cham.
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