BU111 Lecture 8: Lecture 8 2016-10-05
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BU111 Full Course Notes
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Document Summary
Bootstrapping doing more with less: make do with as few resources as possible, use other peoples" resour(cid:272)es (cid:449)here possi(cid:271)le, find/use free stuff. Debt vs. equity financing (most common: debt = interest and control. Borrowing money, paying back what you borrowed + interest. No voice in how the company is run. Buying supplies from suppliers would be short term, paying back in a month for example: equity = no interest, less control. Selling share of business, partners take a portion of profit. Want a voice in the company, control in the company. Sources savings, love money, private investors, venture capitalist. Love money: family believe in company and invest money. Private investors: take smaller equity in riskier ventures. Venture capitalists: take larger equity in more established ventures. Crowdfunding initiator(business) + backer (gives the money) + platform (virtual market to make it possible for initiator and backer to come together). Small amounts from a large quantity of people: rewards-based.
