Running Head: External Financing

Module 1 Assignment 3: External Financing
Jahmal Parker
Argosy University
3-5-2014

Financial Environment
Genesis Corporation is a company that is in financial need with the potential to grow rapidly over the long term. The company develops moderately advanced technical and software that’s fairly in demand for commercial as well as military use. At present Genesis works only in the United States and Canada, with the first operation opening in North Carolina back in 2000.
The company is thinking to expand its business beyond its current locations in order to meet its global demand. The centers in Canada may not be sufficient for Genesis Corporation to reach its potential in fulfilling that global demand and an expansion to other parts of the world will expose the company to more markets and more revenue streams. However, every almost every company will need financial support at this stage, as well as organizational efficiency. The problem is that Genesis doesn’t have a very strong financial background.

Financial Strategy
Genesis currently has only two financing options available which will prove to be deemed not very effective in its expansion efforts. Family seed monies and an equity investment by a small group of venture capitalists have been their only two resources up until this point.
Rapid revenue growth, the operating expansion, new international clients, and the involvement of more professional ownership necessitate an expansion of the management team (Dizik, 2013). For a company to undergo rapid growth, it needs a very strong financial background in order to set up its infrastructure in other locations. Genesis needs to have a sound financial model so that it can capitalize off of the huge investment required for the expansion.
Genesis will also need money to recruit human resource personnel