Please provide a 100-word response to the following discussion and a 75-word response to the following peer post.
Week 6 Discussion
Please respond to the following:
Using the textbook, Strayer Library, and the Bachelor of Business Administration Library Guide, examine and explain two sources of outside equity financing and two sources of debt financing, that are available to entrepreneurs. Next, describe the source or sources you would use if you were creating a new company. Explain your rationale.
Be sure to respond to at least one of your classmates’ posts.
Peer Response:
Earline Savoy
RE: Week 6 Discussion
Angel investors and Venture Capitalists are known to fund new or early business endeavors. Angels are passive investors- friends or family.
Venture Capitalist typically work for professional firms.
Which the roles and responsibilities of the management are separate from the investors.
Angel investors their own personal capital. Equity financing is normally used by non- established business that do not have sufficient cash flow or collateral with which to secure business loans financial institutions (WWW.the balance.money.Com/angel-investor)
I read that Angel investing is a high risk form of investing;
No guarantee of success
Possibility of losing a significant amount of money.
Lack of liquidity meaning it can be difficult to get your money out of the investment quickly if needed
Potential for low returns
Failure of many business ventures.
The Risk of Venture Capital include:
Stolen ideas
Loss of control
Possibilty of being fired
Prolonged recession
High inflation
www.embroker.com/blog/venture-capital-risk-managem…
Week 6 Assignment – Feasibility Analysis
Introduction”A feasibility analysis is a chance to open your eyes, ask yourself some very tough questions, then check to see whether your idea, as originally conceived, needs to be modified, refocused, or changed dramatically. (Or perhaps even scrapped altogether.)” (1).
OverviewWith this assignment, you will be addressing the fundamental question: Does this business have profit potential?
InstructionsRefer to the same business you described in the first assignment, Creating a Small Business, and write a 4 page paper in which you:
Conduct a feasibility analysis by researching and analyzing each of the following topics and indicate how your business occupies that specific space:Industry and market feasibility.
Product or service feasibility.
Financial feasibility.
Entrepreneurial readiness.
Explain whether the business idea needs to be modified, changed significantly, or abandoned based on your feasibility analysis. (Note: If you abandon the business idea, then you will need to select and analyze a new business that has profit potential.)
Include at least two references outside the textbook. For help with research, writing, and citation, access the Strayer Library or review the Bachelor of Business Administration Library Guide.
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