GROUP 8 Flashcards
13 ENUMERATE THE VARIOUS SOURCES OF INCOME FOR ENTREPRENEURS
- PERSONAL SAVINGS
- VENTURE CAPITAL
- BUSINESS ANGELS
- GOVERNMENT ASSISTANCE
- BANK LOANS
- FINANCIAL BOOTSTRAPPING
- BUYOUTS
- REAL ESTATE
- STARTING A SIDE BUSINESS
- MONETIZING A VLOG AND BLOG
- STOCK MARKET
- DIGITAL PRODUCTS
- INCUBATORS AND ACCELERATORS
Obtaining funding from ________ firms in return for equity.
VARIOUS SOURCES OF INCOME FOR ENTREPRENEURS
VENTURE CAPITAL
funding the business venture with personal or savings money.
VARIOUS SOURCES OF INCOME FOR ENTREPRENEURS
Personal savings
Seeking funding from individual investors (angels) who provide capital and mentorship.
VARIOUS SOURCES OF INCOME FOR ENTREPRENEURS
BUSINESS ANGELS
Exploring grants, subsidies, or loans offered by government agencies to support entrepreneurial initiatives.
VARIOUS SOURCES OF INCOME FOR ENTREPRENEURS
GOVERNMENT ASSISTANCE
Borrowing from banks to finance business operations or expansion.
VARIOUS SOURCES OF INCOME FOR ENTREPRENEURS
BANK LOANS
Running your business with minimal external funding, relying on revenue generated internally.
VARIOUS SOURCES OF INCOME FOR ENTREPRENEURS
FINANCIAL BOOTSTRAPPING
Acquiring an existing business or merging with another company.
VARIOUS SOURCES OF INCOME FOR ENTREPRENEURS
BUYOUTS
Generating income through property rental or appreciation.
VARIOUS SOURCES OF INCOME FOR ENTREPRENEURS
REAL ESTATE
Pursuing additional business ventures alongside your primary one.
VARIOUS SOURCES OF INCOME FOR ENTREPRENEURS
STARTING A SIDE BUSINESS
Earning through advertising, affiliate marketing, or sponsored content.
VARIOUS SOURCES OF INCOME FOR ENTREPRENEURS
MONETIZING A VLOG AND BLOG
Investing in Stocks and Dividend-Paying Companies. Building a diversified investment portfolio.
VARIOUS SOURCES OF INCOME FOR ENTREPRENEURS VARIOUS SOURCES OF INCOME F
STOCK MARKET
Creating and selling e-books, courses, software, or other digital offerings.
VARIOUS SOURCES OF INCOME FOR ENTREPRENEURS
DIGITAL PRODUCTS
Join programs that offer funding, mentorship, and resources. These programs accelerate your growth.
VARIOUS SOURCES OF INCOME FOR ENTREPRENEURS
INCUBATORS AND ACCELERATORS
7 COMPONENTS OF
PROCESS OF RAISING CAPITAL, INCLUDING THE ROLE OF THE INVESTORS AND FUNDING OPTIONS
- Assess capital needs
- Right method
- Prepare a Business Plan and Pitch
- Legal and Regulatory Compliance
- Identify Potential Investors
- Facilitate Due Diligence
- The Roadshow
Begin by evaluating how much capital your business requires and for what specific purpose. Whether it’s for expansion, research and development, or operational needs, a clear understanding of your capital needs is essential.
PROCESS OF RAISING CAPITAL, INCLUDING THE ROLE OF THE INVESTORS AND FUND
Assess capital needs
Identify the most suitable method for raising investor capital. Common options include:
Equity Financing :Involves selling ownership shares (equity) in your company to investors.
Debt Financing: Involves borrowing funds through loans or bonds.
Hybrid Financing: Combines elements of both equity and debt financing.
PROCESS OF RAISING CAPITAL, INCLUDING THE ROLE OF THE INVESTORS AND FUND
Right method
Develop a comprehensive business plan that outlines your company’s vision, growth strategy, financial projections, and how you intend to use the capital.
Craft a compelling pitch to present to potential investors. Highlight the value proposition, market opportunity, and competitive advantage of your business.
PROCESS OF RAISING CAPITAL, INCLUDING THE ROLE OF THE INVESTORS AND FUND
Prepare a Business Plan and Pitch
Ensure compliance with legal and regulatory requirements. Consult legal experts to navigate securities laws, disclosure obligations, and investor protection regulations.
PROCESS OF RAISING CAPITAL, INCLUDING THE ROLE OF THE INVESTORS AND FUND
Legal and Regulatory Compliance
Seek out investors or lenders who align with your business goals and values. Consider:
Angel Investors
Venture Capitalists (VCs)
Crowdfunding Platforms
Private Equity Firms
PROCESS OF RAISING CAPITAL, INCLUDING THE ROLE OF THE INVESTORS AND FUND
Identify Potential Investors
Prepare all necessary documents in advance to ____________. Investors will scrutinize your financials, business model, management team, and growth prospects.
PROCESS OF RAISING CAPITAL, INCLUDING THE ROLE OF THE INVESTORS AND FUND
Facilitate Due Diligence
As part of the capital raising process, embark on a ______. This involves management (often accompanied by investment bankers) meeting institutional investors.
PROCESS OF RAISING CAPITAL, INCLUDING THE ROLE OF THE INVESTORS AND FUND
The Roadshow
`
The roadshow should Focus On (3)
- Management Structure and Governance:
- Key Risks
- Tactical and Long-Term Strategies
Convey efficient oversight controls and good governance.
The roadshow should Focus On
- Management Structure and Governance:
