Reflection
Today we discussed the financing strategy for a business. Financing is a way a business raises funds for a particular purpose. This can be done three ways: obtain gifts and grants, borrow money, and exchange equity. Business often get some capital from creditors. We also discussed debt financing, and found it was available in many forms including commercial loans, personal loans, leases, and bonds. One of the good things about debt financing is that the lender usually has no say in how the business is run, or share in the businesses profits. A down side is that if loan payments are not made lenders could force the business into bankruptcy. Loans also increase the fixed costs of a business which lowers the profit
Looking at financing for my online casino I have a number of different options. I could seek out loans from local banks. I could also seek help from the Sioux land economic development company (SEDC), the Siouxland initiative, the Small Business Development Center (SBDC), or the innovation market.
I feel that when running my business it would be in my best interest to only borrow the funds I absolutely need. I should try to receive grants or look to attract potential investors or ANGELS.
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