Week 10 Questions: Exam 3

Iventory being purchased, employees must be trained and paid, and advertising must be paid for before cash is generated from sales

• Cash Flow Challenges

• Capital Investments

• Lengthy Product Development

• Personal Funds

Some products are under development for years before they generate earnings as the up-front costs often exceed a firms ability to fund these activities on its own.

• Leasing

• Cash Flow Challenges

• Capital Investments

• Lengthy Product Development Cycles

Different Sources of Personal Funding

• All of these are sources of personal funding

• Personal funds, Family and friends

• Bootsrapping

• Friends & Family, Bootsrapping

Cost of buying real estate, building facilitates, and purchasing equipment typically exceeds a firms ability to provide funds.

• Bootstrapping

• Cash Flow Challenges

• Capital Investments

• Lengthy Product Development

Single Purpose loan, line of credit, commercial banks, peer-to-peer lenders, SBA Guranteed Loans and vendor credit are all sources of

• Business Finance

• Debt Financing

• Equity Funding

• Debt Funding

Involves both financial resources and sweat equity

• Bootstrapping

• Friends and Family

• Personal Funds

• Niche Market

Money that is invested by venture Capital firms in startups and small businesses with exceptional growth potential

• Bank Loans

• Crowdfunding

• Venture Capital

• Business Angels

Represents the value of the time and effort that a founder puts into a firm

• Sweat Equity

• Business Management

• Capital Investments

• Venture Capital

Often comes in the form of loans or investments. Involves outright gifts, foregone and delayed compensation

• Bootstrapping Funding

• Buddy Lending

• Personal Funds

• Friends and Family Funding

Finding ways to avoid the need for external financing through creativity, ingenuity, thfitiness, cost cutting and obtaining grants

• Investment solving

• Equity Financing

• Bootstrapping

• Debt Relief