6 - Before going to the outside for funds, all internal financial controls should he established and be in proper working order. Steps to conserve cash internally should have been taken, and planning of present and future financial needs should be realistically done so that the cash requirements and cash flow can be accurately appraised. The hard-headed analysis of the reasons for future financial needs will go a long way in determining the course of action to follow in best meeting those needs. With the management machinery and financial planning and analysis functioning efficiently, the next step is to determine in management counse is certain basic financial policies and strategies. There is no one "best way to do it." The problems vary and so must the answers, depending upon your objectives and the financial features of the venture or ventures that give rise to the need for financing. First, you must decide whether to seek public financing or to continue private financing. For the new business or the smaller business public, financing is often either not available or not available on an economical basis. The investment banker is a merchant and he buys only what he thinks that he can sell. His commission must cover his profit and his costs. Naturally, his costs are going to be very much higher per unit in selling small issues or issues of relatively unknown concerns where he must educate the buyers on the merits of both the company and the issue. He charges accordingly and his natural bias is to price the securities to the public at a level where they will sell rapidly and meet little buyer resistence. These factors, together with the costs of registration and legal opinions, often make public financing