BBE604 Entrepreneurial Finance: A Detailed Analysis of HC One, UK

This report provides a comparative analysis of the entrepreneurial finance strategies employed by HC One, a British healthcare management company, and Help Scout, a US-based help desk software provider. It details the initial funding, funding nature, and the use of debt and equity financing by HC One, including its challenges with income tax payments. In contrast, Help Scout's funding through investors, bank overdrafts, business credit cards, and angel investors is examined. The report contrasts the funding strategies of the two companies, highlighting HC One's reliance on both debt and equity and Help Scout's preference for short-term debt facilities and concludes that financial strategies are according to business requirements.

BBE604: Entrepreneurial
Finance assignment 2

Table of Contents
INTRODUCTION...........................................................................................................................3
Question- A......................................................................................................................................3
About the companies...................................................................................................................3
Initial funding..............................................................................................................................3
Funding and nature of funding....................................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Business and entrepreneurship are regarded to be those aspects that are moulded into bringing
about the circumstances that are in due of attaining success. Entrepreneurship is the one in which
the young ideas and the ideologies are more into determining the standards of establishing the
new decisions and the entrepreneurs are more into taking ahead the concept of growth (Julien,
2018). The report will bring about all the necessary information regarding the business and
entrepreneurship and the components that are included in it. The organisations that are chosen to
bring about the required formulations are HC One and Help Scout.
Question- A
About the companies
The British Healthcare management company is a HC One. It is one of the largest
entrepreneurial company that was established by the young entrepreneur and the doctor who was
once a chief executive of primary group. This started off as a consultancy and later on
established as one of the most reputed one which is operating and United Kingdom. There are
certain specialities that are included as a part of this organisation and moving ahead with the
specialised care and the personification of different alternative operators (Ribeiro-Soriano,
2017). This organisation has established in order to foster care and also to identify the different
requirements of nursing needs. the entrepreneur who is responsible to take up this organisation is
Chai Patel.
The organisation Help scout which is regarded to be the second organisation in this current
report is one of those organisations which is known to be a help desk for all the software
solutions. This company usually provide people with the kind of knowledge that is necessary for
the service professionals as well as those that are in contact with the widget for customers
(Kansheba, 2020). This company is also evaluated as one of the entrepreneurial interpretation
and it was founded in the year 2011. Nick Francis Jared Mcdaniel and Denis Swindle are the
ones that are included as entrepreneurs for this establishment. They brought about the launch of
this organisation to a series of steps that includes Software Solutions which are to be provided to
people as a part of service-oriented context.
Initial funding
The initial funding pattern that is oriented where the company Help Scout is said to be the one
that is oriented with $800,000 and that has gone into profit and made it almost 6 million dollars

letter on. This organisation has initially come up with an idea that has incorporated every
essential which is required for the software economy and therefore this click the as a dynamite
conception rising over 100 employees. The organisation is said to be serving 10,000 customers
around 140 countries and also one of the main product based organisation that is operating in
United Kingdom. The Other organisation that is being chosen in this report is HC-one and the
finding that is oriented with this organisation is 8.8 billion dollars as an investment over the
entire entity to just come ahead into marketing race. Later on it has which its circumstances to
such an extent that the organisation has formed of a different hierarchy which included chairman
Board of members executive officers and different roles that are brought about by various
evaluations for funding. There is a certainty in the circumstances when the organisation was
declared as the one that has underwent a loss period in 2011. This is because it has not paid their
income tax on time.
Funding and nature of funding
According to the reports that will revolve around the organisation HC- One it is stated that the
funding has been incorporated into several means of deriving the services of a healthcare sector
and the nature of funding is preferable a private equity which has been owned by HC- one itself.
The Organisation was established in the year 2011 and there are certain variations that came a
part of the operational entity. This has brought about a good amount of debt for the organisation
where it was into Income Tax trouble and could not pay of the bills. For this purpose there has
been an issue which provide as a part of the organisational financial ability. Whereas the other
organisation which Help Scout is said to be oriented with various acknowledgement that are in
regard to software solution and it brought about a sensation by delivering the calibre solutions to
people that are approaching. There are certain amount of funding that fall in regard to this
organisation where there are 21 investors that are ready to bring about their share in the
company's funding policy. Eventually the organisation reached the perks of being the best and
the profits that are oriented turn to be around million dollars and that has a good reputation in the
market race (Dalevska and et.al, 2019). The nature of funding with regard to this company
literally brought about a good amount of options that evaluated their choices into developing
trust in the businesses as well as in the midst of customers. The use of this help desk which was
proposed by the organisation Helps Scout was trusted by almost 12000 businesses around 140
countries which helped it to manage its economy on an immense basis.

company’s products and services
HC one:
this was started in 2011. it is the UK based company and is the healthcare management company.
it works in the field of nursing and residential care of elderly people. this company is famous in
complete UK for its high quality services to older people which is given by their employees
(Ikuta, 2021). company also provide special care in case of dementia etc. so it can be said that it
provide healthcare related services whether it is general or special.
Help Scout
Help Scout is the US based company which is the provider of help desk software. the services
which is provided by this company are embeddable search, email based customer support help,
knowledge base feature etc. company sell web based produced. this is highly technology oriented
company. company provide customer services to their customers via email. customer can email
to the company if they have any query.
Detail of company available
HC one:
this company is one of the largest company of UK which is providing care related services.
company have many care homes and they are planning to sale four of them. this decision is taken
by the founder of company (Crespi and Mascia, 2018). so that is why those care homes will get
closed which is not providing any profit to the company rather incurring losses.
Help Scout
this company is not sold or purchased by any other company. company is operating under
profitable situation. so that is why there is not need to sale company or any of its operations.
Question- B
Comparing funding strategies of two companies
HC one have taken debt finance. under this funding strategy business takes loans from financial
institutions like banks or non banking financial services. company apply for short term or long
term loans. banks gives them loan on certain rate of interest. company have to pay instalment
every month which include the interest charges as well. in this option company does not give
share or ownership (Zheng, 2018). they only take money and pay interest on them. this funding
option is the most common option. as taking loan from banks is the easy option and company
also do not give ownership for that. HC one is using this option many times. for expansion also

company have used this option. if company want to open care home then they take loan from
financial institutions. this is the easy and the most convenient option. Company has also took
equity finance. under this strategy company sell equity shares to the investors. investors in return
provide funds to the company against equity share. these funds are helpful in the growth and
productivity of the company (Gosain, 2018). company no need to give money to the investors. as
they are providing equity shares to the investors. through this way investors becomes owners of
the company. it is good option for those company who do not want to increase their debts
because company does not have to pay anything to the equity shareholders.
they will only pay dividends to the equity shareholders only is the company is incurring profit in
case of losses company will not going to pay any dividend. on the other hand Help Scout is using
bank overdraft as their funding strategy. it is the highly funding option which is used by many
companies. this is easy funding option. it is given to the company on the current account (Halt
and et.al., 2017). it is also called as the short term finance. as Help scout is not big company. so
that is why to fulfil short term liability company uses short term funding option. company has to
pay some charges if they want to use this feature. banks take some charges from company and
give this facility that they can transfer money with exceeding their balance. small companies
often use this overdraft facility because it is easy to use and also not the costly funding option.
under this option also owner of company do not provide or dissolve their ownership. business
credit cards are also considered by this company and taken as the funding option.
it is one of the easy funding strategy when company have to pay for its daily needs or business
activities. it is easy to use credit card. so this option is also said to be one of the most convenient
funding option. it is used to fulfil short term expenditure of the company. to get credit cards
company should have good credit rating. financial institutions which are banks provide credit
cards to the company. company uses cards to fulfil daily requirement and after completion of
month bank sent them credit card bill which has to be paid by company. this funding option is
flexible as it can be used by anytime or by anybody (Power, 2021). Help scout is the technologic
based company so it can get funds through Angel investors also. Angel investors are those which
provides funds to new company as a seed capital. they majorly invest in technology related
company because it is expected that there are highly chances of growing such companies. help
scout company also have taken various small business loans for expanding company. these loans
are easily available and many government banks provide this type of loans at low rate of interest

to small businesses so that they can also grow. rate of interest on such loans are also low. this is
also good option to raise funds from the market. small business loans are also easy to repay.
business have to pay few instalments which is mentioned by banks including rate of interest. this
funding strategy is favourable for company because it gives opportunity to the company to
expand their business in international market also. above it has discussed various funding
strategies. broadly speaking funding strategies are of two types which are debt related funding
strategies and equity related funding strategies.
it is found that HC one is using equity and debt both funding strategy (Iyanda, 2021). to fulfil
long term needs of company they uses equity strategy and to fulfil short term funding needs they
uses debt facilities which are easily provided by financial institutions. whereas Help Desk is
taking debt funds as it is the small company so have less credit requirements. so that is why
company fulfil its requirements through bank short term loan, overdraft facility etc. these types
of facilities are easy to take and also comes with easy repaying option. it also require less
paperwork as compare to equity and also owner do not loses its business share.
CONCLUSION
Through this report it can be concluded that financial requirement of business is one of the most
important requirement. there are many options within which these requirements can be fulfilled.
HC one take funding by issuing equity shares to the investors. they also take long term loans for
various financial institutions like banks and NBFC. while Help scout uses bank overdraft facility
to pay their business liability. this report has discussed in detail about these two company which
is HC one and Help Scout. it consists information like when t5he company has started and why
the founder has got motivated to start this company. repot has evaluated complete funding
strategies which is used by both companies in order to fulfil its funds related requirement.
funding is required by every company whether it is small of big. but their funding strategies
varied as the size and needs of company their funding strategy changes.

REFERENCES
Books and journals
Julien, 2018. The state of the art in small business and entrepreneurship. Routledge.
Ribeiro-Soriano, 2017. Small business and entrepreneurship: their role in economic and social
development.
Kansheba, 2020. Small business and entrepreneurship in Africa: the nexus of entrepreneurial
ecosystems and productive entrepreneurship. Small Enterprise Research. 27(2). pp.110-
124.
Dalevska and et.al, 2019. Formation of the entrepreneurship model of e-business in the context
of the introduction of information and communication technologies.
Iyanda, A.O., 2021. Funding Strategies for Small Business Sustainability (Doctoral dissertation,
Walden University).
Power, A.P., 2021. Redesigning the Entire Funding Process. In Adventure Finance (pp. 239-
242). Palgrave Macmillan, Cham.
Halt, G.B. and et.al., 2017. Sources of company funding. In Intellectual Property and Financing
Strategies for Technology Startups (pp. 11-33). Springer, Cham.
Zheng, S., 2018. Investigation into Funding Strategies of Social Enterprises. The China
Nonprofit Review. 10(1). pp.34-61.
Crespi, F. and Mascia, D.V., 2018. Bank Funding Strategies. Palgrave Macmillan Studies in
Banking and Financial Institutions.
Ikuta, L., 2021. Improving Funding Attractiveness with Financial Forecasts for a Seed Stage
Digital Company.
Gosain, S., 2018. Crowd Funding: Organizing Finance the New Way. In Radical Reorganization
of Existing Work Structures Through Digitalization (pp. 18-35). IGI Global.
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