Question

Discuss how personal fund (Bootstrapping, personal fund, family and friend) and Debt Financing (commercial bank, SBA Guaranted Loan Program, Crowdfunding) can raise a person capital. to reorganize his or her business (500words).

Answer 1

Bootstrapping – This represents is building a company from the ground up with nothing but from personal savings

The bootstrap entrepreneur retains total control of the business and make all of the decision . One of the advantage of Bootstripping is that it allows business owner to experiment more with their brand as there is no pressure from outside Investor But in this case of business ,another type of pressure mainly due to they use their personal asset + Family asset

Advantage of Bootstrapping business can way to start slowly brining the revenue and establishing a safety that will fund future investment in the business

Debt financial and support business finance always bring cost money to start business . Its most important to understand by business owner about initial fund requirement to start the business .Individual can take help from Venture capital to Invest . Business owner has to submit complete financial term sheet with business plan + future projection

Business owner can use “ Crowd funding” to fund their business in following way :

Crowdfunding raises funds for a business from a large number of people called Crowdfunders . Crowdfunders are not typically Investor because they do not get any share of the business. This method is very much popular because it contain very low risk

Small Business loan – Consider small business loan , secure loan