Question

Aiden is known for his great ideas. He started a business and is actively looking for money to grow it.

Currently, the business does not have any sales (zero revenue), but Aiden is confident that funding will let him invest in the business and lead to sales. Aiden thinks he will need $50,000.

1. What are some options Aiden can explore to get funding for his business? Please explain.

2. Which method(s) of funding do you think gives Aiden the best chance of getting $50,000? Justify your answer.

3. Given the information above, what do you think is the most appropriate form of business ownership for Aiden? Justify your answer.

please it's urgent!! Thanku!!!

Answer 1

1. Some options for funding in business are

· Invest own capital. Own capital can be through savings or through taking money from family and friends

· Borrowing through banks. Approach banks with forecasted financial statements and take a business loan

· Approach venture capital. Venture capital invests in start up with a concept which is currently in trend in market. For example : Cab service, online delivery companies, etc

· Approach firms which are investing in start up. For example: Google, Microsoft, etc

2. If the concept of new business is something new and is viable commercially then venture capitals or organisation which are investing in start up should be approached. There are relevant forums where organisation provides a platform to start ups to pitch their ideas. Such platforms should be used to convince the investors and raise capital

3. The most appropriate form of ownership would be sole proprietorship initially. Based on future expansion the form of ownership can be extended to LLP or corporate. For example: if investment is made by firms like Microsoft, corporate form of ownership may be needed since they will purchase equity in return for investment.