Entrepreneurial Finance BA 752 Raising Entrepreneurial Capital Chapter 1.

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Presentation transcript:

Entrepreneurial Finance BA 752 Raising Entrepreneurial Capital Chapter 1

Setting the groundwork  Entrepreneurial venture vs. small business  Good idea vs. good idea for a company

Start up capital  Trends in capital availability  1990’s  Recession –  Today

Initial capital sources  The entrepreneur  Friends and family  Customers and suppliers  Angels  Bootstrapping

Bootstrapping  Do more with less  Ownership of assets is not important  Limit the VP’s  Maximize the use of trade credit  Cash flow is king!

Impact of the Internet  Source of resources  Source of sales  Source of financing

Organizational form  Sole Proprietorship  General Partnership  LLC (S corp)  LLP  Limited Partnership  C Corporation