Just need help with financial statements and deciding what kind of business I sh
ID: 2638360 • Letter: J
Question
Just need help with financial statements and deciding what kind of business I should "start"! I totally lack on the creativity department. I don't think I can just create financial statements on a fake company I can create. I actually am so confused about the "steps" I should take to open a business so I'm having a really hard time to complete this essay. I really just need the financial statements but if you have any information, steps, or regulations you could provide me with it would be so beneficial to help me write this!! I don't even know where to start besides I believe debt financing is the way to go.
Heres the assignment:
You just started your own business about a year ago with your own money. You now need to bring in capital to take your business to the next level. You need to decide whether to use equity financing (issue stock) or debt financing (issue bonds). I want you to decide which way you are going to proceed, why and take me through the entire process from inception to fruition including all the regulatory issues. I want to know the name of your company, what you do, and why you need the capital. Your paper should be at least 5 pages (of which 2 are for financial information such as income statement, balance sheet etc.,), double spaced, APA format. Work cited page is additional. Take some time to think about your structure. Brainstorm and ensure you take a step by step approach.
Explanation / Answer
To decide between equity financing or taking on a loan for ones business is a challenge for all small business owners when they need capital to expand a business. Should one go to a bank to apply for a business loan? Or should one look for an investor?
Below are the advantages and disadvantages of each to determine which type of financing is best for your business:
Equity financing
An investor writing one a check may seem like the perfect answer if one wants to expand business but don't want to take on debt. After all, ths is money without the hassles of repayment or interest. But these dollars come with huge strings attached: One must share the profits with the venture capitalist or the angel investor.
Advantages of equity financing:
Disadvantages of equity financing:
Debt financing
The loan relationship with a bank that loans you money is very different from a loan from an investor -- and requires no need to give up a part of your company. But if you take on too much debt, it may be a move that can stifle growth.
Advantages of debt financing:
Disadvantages of debt financing:
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