Everything around us works under some principles that ensure the balance around. Same goes for entrepreneurial Finance, here are seven basic principles for EF. 1. "Real, Human, and Financial Capital Must be Rented from Owners: owners must provide employees with salaries and give rent for building and must take part in investing activities to ensure smooth running of business.
2. Risk and Expected Reward Go Hand in Hand: Higher the risk, higher the return.
3. While Accounting is the Language of Business, Cash is the Currency: accounting is essential business and it is a source to tell the financial position of the venture to stakeholders but casj flows are the basic determinants for the profitability of business.
4. New Venture Financing Involves Search, Negotiation, and Privacy: before launching a business, preparation needs to be done, searching and negotiation ivestors and privacy contact is essential
5. A Venture's Financial Objective is to Increase Value: the ultimate goal of any owner, investor or management is to increase the value of the firm ony then it will prosperous