Financing and Dynamics of a Start-up Business

Olumide Obanla Written by Olumide Obanla · 2 min read >

You will agree with me that a business starts with an idea, a thought you have been processing in your head, trying to figure out if starting it will eventually work. Anyway, life is about risk, so why not take a calculated risk. Assuming you have gotten all your legal rights, you have secured a place for your business. Now you need to finance your business.

A business can be finance through your own money called owner’s equity or through money you borrow from someone (Debts). A business must be treated as a separate entity from the individual that owns the business, this is called Economic Entity Principle. After sorting out your finance, you use the money to acquire an asset, and the asset will be used for the operation of the business to generate revenue, and all the expenses incurred will be deducted from the revenue to arrive at a profit. Part of the profit can be used to offset some debt and the rest put back to the business to ensure continuity of the business. The below diagram shows a simple illustration of the above discussion.

The growth of a business depends largely on the mission, vision, and goal of the business. As a start-up business, this must be the driving force and a guiding principle for the business. To do this effectively established internal business dynamics which are –

  • Mission, Vision, and Core Values.
  • Owner’s Requirement
  • Strategy.
  • Resources
  • Outcomes.

Mission, Vision, and Core Values

This is what your company does. Keep it short and sweet, and easy to memorize. It’s tempting to use fancy words that sound good but end up not meaning much. Your mission statement should be specific enough that people understand what you do and how you differ from your competitors. Consider these mission statements of well-known business

Owner’s Requirement

Owning a small business is not just another job. It’s a different lifestyle. You have to ask yourself whether you’re ready for a complete commitment to the success of your business. Just as importantly, you have to ask your employee, whether he or she is committed to supporting you in achieving your mission, vision, and core value.


Before you can develop a strategic plan to drive business growth, you must have a solid understanding of the competitive landscape in your industry. When you know who your ideal customer is and what problem they are looking to solve with your product or service, research who else is providing a viable solution in your industry.


Use all the available means to gather facts using data. Modern businesses make use of data in a variety of ways. The most prominent one would be as a means to improve their business in every which way possible. Most businesses, particularly those who have a presence on the Internet use survey tools for their website to gather data. The data collected are then organized and used in the parts of the company where it is deemed most useful.


Every business is expected to make a profit. Business outcomes are, in essence, the goals set by a company to measure the success or achievement of an internal or external process. These goals can also be labeled “desired outcomes” and are a useful way of helping staff to focus on achieving customer success.

The process of starting your business can however be slightly overwhelming. However, putting those above principles and guidelines in place can be helpful.

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