Published: November, 2021
The fuel for growth in a business is cash.
Cash can be generated both from operations of the business, as well as external sources of debt and equity financing.
Managing the various options for finding the cash needed to support growth can be quite daunting.
Established players can often use the cash flow they generate from sales of their products, services, or advertising to fund growth.
The second method of financing growth is equity. Equity is the sale of stock in the company in return for cash. Equity can be common shares or preferred shares. Preferred shares have priority for receiving cash distributions and usually convert to common shares once the priority obligations are met.
The third option for financing growth is debt. Debt is a loan from a bank, venture lender, private equity firm, corporation, or individual. Debt accrues interest that must be paid monthly, quarterly, annually, or at maturity. The principal must also be repaid periodically or at maturity.
Equity should be used for financing when the risk of not being able to service debt is high. The greater business risk makes equity the better choice for financing.
If you can’t repay, don’t borrow!
Debt financing is a sound financing option when you know can pay back both interest and principal. You don’t need to have positive cash flow, just enough cash available to pay the interest and amortize the principal over the life of the loan.
This CPE course examines the various sources of cash flow to support the growth of a business and explains the best use of each of the various specific options.
MY-CPE LLC, 1600 Highway 6 south, suite 250, sugar land, TX, 77478
MY-CPE LLC (Sponsor Id#: 143597) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org.
Founder & CEO, Entrepreneurial Mind LLC
Growing up, entrepreneurship and small business was normal dinner time conversation at the Cornwall household. This set the stage for a decades-long career pursuing entrepreneurial ventures and sharing his knowledge in the classroom. He has spent more than forty years as a serial entrepreneur. In the 1970’s he started several small businesses and was involved in various family ventures. In the late 1980’s, following several years in academics, Dr. Cornwall co-founded Atlantic Behavioral Health Systems in Raleigh, NC and spent nearly a decade leading the company as President/CEO. After growing to more than 300 employees, he and his partners sold most of their healthcare holdings. After the sale, Dr. Cornwall decided it was time to return to the classroom to share his experience and knowledge with aspiring entrepreneurs.
In his academic career, Dr. Cornwall received national awards for his work in curriculum development and teaching. In 2013 the United States Association of Small Business and Entrepreneurship named Dr. Cornwall the National Entrepreneurship Educator of the Year. Currently, Dr. Cornwall is the inaugural recipient of the Jack C. Massey Chair in Entrepreneurship and Professor of Entrepreneurship at Belmont University in Nashville, TN. He also was the founding Director of the Center for Entrepreneurship at Belmont and led the center during the first ten years of its operation during which it was ranked among the best programs in the country.
Dr. Cornwall’s blog, which launched in 2003, is among the most popular blogs focusing on small business and entrepreneurship. It was named One of the 100 Best Websites for Entrepreneurs by Forbes magazine. His writing has been quoted in Wall Street Journal, Entrepreneur, Inc, Forbes, and US News and World Report.
Entrepreneurial Mind, LLC is a digital educational content company specializing in Entrepreneurship and Small Business Management. Our catalog includes twenty-one video courses (nineteen for adult learners, one for youth learners, and one for Spanish speaking learners) related to starting, managing, and growing businesses of all types across all industries. These courses can be bundled together as modules into more comprehensive certification programs to meet the needs of your learners. Total runtime for each individual course is 1- 3 hours, broken down into 3-12 minute lessons.
Dec 28th, 2021
Instructor was pleasant and well informed, presented complex topics in a manner anyone can understand and gave a lot of information in the time allotted. I learned a lot!
Dec 8th, 2021
Excellent self study. Quality video, great material, great instruction. Just the right amount of time.
Jul 12th, 2022
Very informative and easy to follow.
Jun 30th, 2022
Excellent program! I learned a lot.
Jan 16th, 2022