Sources of Capital for Entrepreneurs
1. What stood out the most to me was the art of bootstrapping. I've heard the saying before but never really knew what it meant until now with doing more with less. Bootstrapping looks like something I would do, trying to make the most of what little I have by rummaging garage sales (one man's junk is another man's treasure), sharing office space, encouraging customers to pay early (to make sure that you get your money back sooner so it's less likely they won't be able to repay), and hiring student interns.
2. Venture capitalists are professional investors who invest in business ventures but when they describes what a venture capitalist would do it sounds like they are practically running the business themselves off of the entrepreneur idea. Rather than just investing money they negotiate for them, recruit employees, contacts, market research and strategy, etc.
3. If someone gave you a proposal for their business idea, what would be the fist factor you would think of? Timing, stability, capability? I'm curious about what you think i the most important.
Would you look for a venture capitalist or a business angel? I'm wondering what you think would be more sound and when wold one be more favorable over the other?
4. The author covered a lot of the basis for how entrepreneurs get their capital either from their personal or family's money to banks, IPOs, and Venture Capitalists. That lenders look over the proposals very carefully to see if they will be able to repay what they are asking. Although they look carefully into a proposal to see if it will produce money, I can see that sometimes a venture capitalist or angel will put their arm or leg out on a hunch that a proposal that doesn't sound like the best option may pull through but it not happen very often since most people are all about making money all the time.
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