Entrepreneurial Finance Considerations

What was the initial business idea that didn't succeed?

• Beard oil for cats

• Beard oil for dogs

• Coffee made from root vegetables

• Pet grooming services

What is a key benefit of SBA loans for entrepreneurs?

• Short repayment terms

• No need for a business plan

• No interest rates

• Low rates and small down payments

Why might a new business struggle to qualify for an SBA loan?

• They need a long track record of revenue

• They require no collateral

• They require a high credit score

• They are only for tech startups

What is a potential downside of using a business credit card for financing?

• High interest rates

• No need for personal credit

• No credit score impact

• Unlimited credit limit

What might lenders require to ensure repayment of a business loan?

• A personal guarantee

• A co-signer

• Collateral like a home or car

• A business plan

What do investors receive in exchange for funding a business?

• A fixed interest rate

• A slice of equity

• A guaranteed return

• A business license

What is a characteristic of angel investors?

• They only invest in tech companies

• They often play an active role in the business

• They provide small amounts of capital

• They are usually inexperienced

How does venture capital differ from angel investing?

• It involves a single investor

• It is only for non-profit businesses

• It involves a firm or fund manager

• It requires no business plan

What is a key advantage of crowdfunding for new businesses?

• It requires no business plan

• It involves no risk

• It is only for tech startups

• It generates a lot of cash each year

What should entrepreneurs be cautious about when using personal savings for business?

• Not needing a business plan

• Having too much capital

• Avoiding any financial risk

• Draining their emergency fund