Analysis of Potential Sources of Fund for Bubbly Bakery

This report analyzes and evaluates potential sources of raising funds for Bubbly Bakery, a small scale business. It discusses self funding, angel investors, and crowd funding as alternative options. It recommends crowd funding as the best option for raising funds.

TABLE OF CONTENT
REFERENCES................................................................................................................................3

INTRODUCTION
Finance management before selecting best appropriate sources of fund effective analysis
its drawback and benefits so that maximum benefits can be render to customers. The report has
discussed about different sources of fund that are available for bubbly bakery.
TASK 1
Analysis and evaluation of potential sources of raising funds that is available to bubbly- Bakery
Bubbly bakery is a small scale business which require fund for ranges of afternoon teas
events for local dignitaries. So, there are various alternative option which can be used by
management for raising fund that are illustrated below:
Self funding: Most of the entrepreneurs uses their personal saving or sell their assets in order to
get sufficient amount of cash to incorporate business (Sharma and Mandan, 2019). It can also
borrow money or capital from friends and family for effective operation of enterprise.
Benefits: It is best method to raise small amount of fund for fulfilment of basic requirements of
business.
Drawbacks: Self funding has a drawback that might owner of business does not have sufficient
amount of fund.
Angel Investors: It includes individual that have huge amount of wealth or are retired from post
of executives that are interested in making investment in small firms to earn high return on
capital. These people have immerse knowledge, experienced related to business management and
technical at the same time strong network of contact.
Benefits: The best benefit of angel investors is that they help companies in formulating several
strategies that can be used to gain competitive advantages. They have strong connection or
network with customers, employees and bankers that contributed in effective growth and success
of firm (Arslanian, 2016).
Drawbacks: They want sustainable return on investment thus it may result in loss of control
over business operation.
Crowd funding: It is another option or alternative can be used by bubbly bakery which involves
collection of fund or amount of money from large number of individual by use of internet
platform. Thus, Owner through small contribution of various person can raise capital for smooth
operation of business and attainment of objectives.

Benefits: It is more effective and efficient method as compared to other traditional sources of
raising fund as it also contribute in building strong brand image and relationship with customers.
Drawbacks: It involves high competition and risk of failure.
TASK 2
Justification of accurate sources of fund for organisation
It can be recommend or suggested from above analysis of various potential sources of
fund that crowd funding is best alternative option that can be used to raise fund for meeting all
expense and earning sufficient amount of profit margin. It is better than other option because as
in angle investors company have to lot its control in order to have sufficient fund for operation of
business (Sidman, 2016). It can also be critically stated that self funding is not suitable as it
require more amount of capital to start its new events and grow its business. Crowd funding is
more better and effective than other alternative as it helps in creating strong adaptation or loyalty
of customers in other terms increased awareness in minds of people so that they can choose its
products as compared to another’s. Therefore it provide both benefits that is fulfilment of
requirements of fund and effective marketing that helps in increasing number of customers.
CONCLUSION
It can be stated that there are many other sources such as bank loans, government grants
and cloud funding which may be opted by company.

REFERENCES
Books and Journals
Sharma, T. and Mandan, R. K., 2019. Raising Funds for Microenterprise: An Elusive Reality.
In Start-up Marketing Strategies in India. Emerald Publishing Limited.
Arslanian, H., 2016. Capital Raising. In Entrepreneurship in Finance (pp. 157-181). Palgrave
Macmillan, Cham.
Sidman, C., 2016. Crowdfunding and Angel Investing. In Angels without Borders: Trends and
Policies Shaping Angel Investment Worldwide (pp. 43-57).