How will you go about estimating financial requirements for starting a night clu

Question

How will you go about estimating financial requirements for starting a night club? Which is a better option for such a business venture- Debt financing or Equity financing? Why so? Now, some obvious sources of financing (be specific) for starting such a venture?

You’re in a meeting with an angel investor whose funding could jump-start your venture. How would you feel if you had to answer the investor’s questions with “I don’t know” several times in a row? Why do you think VCs tend to “bury their dead quietly”? .

What is meant “crowd sourcing” in the context of financing ventures? Why is it an increasing possibility in the years ahead? Use some examples to make case stronger

Explanation / Answer

the biggest thing when starting a business you need to have enough money.Without money it will be very difficult to run a business.First thing before starting a business one should estimate its financial needs and even estimate its expenses.first cost which the company has to bear is roc filing and company startup cosyt whatever is needed.for example license fees,professional & Roc fees equipments,place of night club depends on the area,consulting and design charges.expenses which a night club has to face is bartender,dj ,waiters to provide the food service,music player,lightings and a good location where they can get a good crowd.

club can vary in sizes from a medium size to the full scale club.No matter whatever you choose one has to spend a lot of time in marketing as its revenue depends on its buzz and in trendsiness

if u need cash as early as possible then debt financing is good.as its get you loans fast if applied to right people as compared to equity financing.in equity financing its take times as you need to find a right lender give all the doucments make you business known to them then give legal documents and then its gets approved.

some sources of financing for starting a venture are

banks which provides direct loans to small business but you need to give gurantee.

Any private investor can help you in lending loans

loans can be taken by family friends by personal networking.

governments also help in giving loans with the interest.

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