Question

Write 150 words with one APA reference. Post ideas on how you plan to fund a business, what advantages there are and what the downsides are. You should also post additional resources showing why your idea(s) are good ones.

Answer 1

Funding a business during the start up phase is the most difficult. The best way is to get venture capital. For this you need to sell your idea and the profitability of your ideas to potential high net worth individuals who will have the capital to invest in the firm. They have to be taken into confidence about the long term growth of your business and the sustainability of the business

Upsides:

1. It is not as difficult as to get a loan from a bank or a financial institution. Most banks do not want to take risks with start-ups.

2. If you idea is sustainable, getting funding is easy

3. There are several venture capital firms which you can approach where you can showcase your talent.

4, Moreover, these Venture capital firm also have the experience to aid business and make your plan more realistic by have business leaders see your plan. This improves your chances of getting the capital

Disadvantages:

1. These investors require high return on capital

2. They are willing to wait, but may stake claim on your business if it goes out of path in the future

3. You may not be able to fully independently set up your business as fund givers always have their say.