Obtaining financing 2

• Economie

Chapter 19

Section2:Obtaining Financing and growth capital

Pages 447- 454

Objectives

1. Describe bootstrapping and it helps entrepreneurs to start a business

2. Analyze the most common source of start up capital for entrepreneurs

3. Elaborate the best source of financing to retain as much control of your business

Bootstrapping involves operating as frugally as possible and

cutting all unnecessary expenses.

Entrepreneurs accomplish this by borrowing, leasing, and partnering to acquire resources.

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Operating as frugally as possible and
cutting all unnecessary expenses.

1. Financing
2. Venture capital
3. Leasing
4. Bootstrapping

What are involved in bootstrapping?

How does bootstrapping helps entrepreneurs to start a business?

Sources of financing 

The resources come in several forms: savings, credit cards,

loans, and investments.

Equity capital is cash raised for a business in exchange for an

ownership stake in the business.

Debt capital is the money raised by taking out loans.

What is the most common source of start up finance?

What is working
capital, is the money a business uses to support
its operations in the short term?

1. Line of credit
2. MESBIC"S
3. Trade credit
4. Operating capital

What is money raised by taking out loans?

1. Equity capital
2. Trade Credit
3. Debt capital
4. Risk capital

Incase of equity and debt financing who has control over business?

Which of the sources of finance is the best and helps you to maintain control?

What are the important points of the lesson?