Steps to Growth Capital New Tech Case Story

New Tech Case Story - Step 1

The Challenge: How Much Do They Need?

Stuart Chip, founder and owner of New Tech Distributors Corp. wants to take his company to a higher level. He is very optimistic about New Tech's expansion program and its capability for producing power modules. He realizes that the key to New Tech's future growth and success is to produce and sell a new line of highly profitable power modules that can provide New Tech with higher margins and improved financial performance. He feels that the market for power modules is growing rapidly and this is the right time to expand. But Stuart needs growth capital to build new production facilities, market the new line and fund ongoing operations.

Key Tasks

To determine how much money New Tech will need, Stuart must decide:

• How will New Tech develop its plan for growth?
• Do they need outside expertise? If so, who: an investment advisor? a lawyer?
• Who will do the financial projections?
• How will they make their projections? What sort of assumptions are they going to make?
• How much money they actually need for specific purposes?

Read how New Tech determines its financing needs.

Read about New Tech's financial projections.

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