start-up is a young company which is founded by an(or more) entrepreneur(s)having
a unique business idea or in possession of a unique product or service and expresses
his (or their) interest of making a profit by bringing it into the market. An
entrepreneur is an individual who comes to the market with a new idea, bearing
most of the risks and at the same time enjoying most of the rewards. Now when
an entrepreneur decides to set up a business i.e. a start-up he has to choose a
particular business type (sole proprietorship, partnership, corporation, one
person company, etc.
The line of business
and requirement of assets to set up such types of business or in simple words,
his initial investments.
The modes of raising
funds i.e. by borrowing money for this purpose or share the ownership with
others by issuing equity.
Management of the flow
of funds in the business i.e. day to day operations of the business, collecting
cash from debtors, paying the creditors, maintaining appropriate cash balances
so that neither there is excess nor shortage of liquidity.