14 Jun Principles Of Finance
Suppose you need $1 million dollars to start your Dream Business. Research ways to get the money for such a business. Compare two (2) sources of financing you might obtain. (e.g., Small Business Administration (SBA), private investors, private loans, personal assets, and / or personal credit cards.) Identify the risks and benefits of your two (2) choices.
Classmate post only responding to it:
If I had to raise $1 Million, the first thing I would do is present my business plan to investors. Once they see how lucrative my business is I would assure them that they would get a good return on their investment. If in return my business doesn’t do as well as I hoped, I will probably have to file bankruptcy and never open a business in that same name again. Which will also leave my investors at a loss and they will probably never do business with me again either.
Another way to raise $1M is to get a Small Business Loan. I would probably use the equity in my home as collateral. If my business is not successful I would lose the equity in my home but I still should have somewhere to live because I stayed current on my mortgage payments.
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