Nazia Ali is the founder of Nikkis Limited, company that makes all natural and sustainable products...

  

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Nazia Ali is the founder of Nikkis Limited, company that makes all natural and sustainable products for skin care. The company is profitable. While profitability reduces some entrepreneurial issues, it raises some stressful considerations. She needs to decide what is next for the company. Nazia has had a number of conversations with investment teams who are enthusiastic about the company and want to invest. This builds on two previous successful attempts to raise capital through assigning equity to the investors. But this time the business is generating cash-they have cash in the bank. She faces a dilemma-to raise additional capital to grow rapidly or continue to grow more slowly using cash generated by the business. Should she raise equity capital and rapidly grow the business or should she grow more slowly and maintain ownership and control? Are there other options for funding growth that do not dilute equity and, therefore, would help her maintain control? If she opts for bank loan in order to increase its capital and growth of the business, will she be able to cope up with pressure of bank to return the loan with high mark up rates? Acti Go to Nazia Ali is the founder of Nikkis Limited, company that makes all natural and sustainable products for skin care. The company is profitable. While profitability reduces some entrepreneurial issues, it raises some stressful considerations. She needs to decide what is next for the company. Nazia has had a number of conversations with investment teams who are enthusiastic about the company and want to invest. This builds on two previous successful attempts to raise capital through assigning equity to the investors. But this time the business is generating cash-they have cash in the bank. She faces a dilemma-to raise additional capital to grow rapidly or continue to grow more slowly using cash generated by the business. Should she raise equity capital and rapidly grow the business or should she grow more slowly and maintain ownership and control? Are there other options for funding growth that do not dilute equity and, therefore, would help her maintain control? If she opts for bank loan in order to increase its capital and growth of the business, will she be able to cope up with pressure of bank to return the loan with high mark up rates? Acti Go to

Answer rating: 100% (QA)

1 If she does not want to dilute the control over the company she should ... View the full answer