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• List at least three different ways you could fund your business and explain the pros and cons of each.
• Why do you think a business plan is important to the success of your business concept? Or is it?
• Find a resource about why a business plan is necessary. Share a link to the resource and discuss your ideas on the topics presented in the resource.
• Successfully transitioning a family business from one generation to another is a goal of many owners of family-run firms. Discuss the pros and cons of passing a business from one generation to another. +500 words, include references
1. Loans: One way to fund a business is through applying for loans from banks or other lending institutions. The advantages of this option are that it can provide quick access to capital, and the repayment terms can be negotiated depending on the needs of the business. Additionally, there are various loan types available depending on the particular needs of the business. A major downside of loans is that they often require collateral and have high interest rates which can add additional costs to running your business.
2. Crowdfunding: Another popular method to fund a business is crowdfunding, which involves raising money from backers via an online platform such as Kickstarter or GoFundMe. This type of funding has become increasingly popular due to its ability to reach large numbers of potential donors quickly and efficiently. Moreover, the funds raised do not need to be repaid unless certain objectives are achieved during the campaign period – making it an attractive option for businesses seeking fast working capital with minimal risk involved in terms of repaying debtors/investors should things go wrong with their projects/businesses down the line. On the flip side, crowdfunding does come with a set fee (e.g., platform fees) and carries risks related to over-promising rewards or services that are not able to be fulfilled by businesses who use these platforms for fundraising campaigns – something that must be taken into consideration when pursuing this option for financing one’s enterprise ventures .
3 Venture Capital: Lastly, venture capital (VC) financing may also serve as another possible source for funding a new business endeavor or project; though typically reserved more towards startups that carry higher levels risk than established businesses would usually entertain – as VC firms will only invest in companies where they deem “high growth potential” exists within them along with good return prospects in exchange for their financial backing.. The positives associated with VC include gaining access to resources outside your own networks; like angel investors and wealthy individuals who may offer mentorship & guidance along with providing advice based upon their extensive experience in industry specific arenas; plus you typically don’t owe any money back if your venture fails unlike traditional forms of financing previously discussed here – only equity shares you’ve agreed upon prior within your venture agreement contractual documentations(see appendix A). However one big negative aspect about VC’s is having less control over decision making since board members hold disparity amongst voting rights amongst shareholders & stakeholders when it comes directing where tasks & responsibilities should take place inside an organization etc.