2. Challenges of Funding a New Business Venture CM105-09: College Composition I: Effective Writing for Business Instructor: Mark Kusnir 1

3. Square One The spark of a new idea for a business is just the start of a long process. Every successful company has grown from a strong foundation. The backbone of the entire project would be based upon how successful the company can be launched financially (McNamara, 2010). 2

4. IT COMES IN THREES The aspects that of funding a business include: Deciding of the risks can be shared How the initial capital can be obtained and managed Planning for future funding expectations 3

5. Can the risks be divided? New business owners might be prone to think that they have it all under control, but the fact of the matter is, some companies might benefit with a partnership. 4

6. Why would you need someone else? One reason as to why an entrepreneur would consider a partner would be the needs of the company. Some responsibilities can be shared and divided up to ensure a smooth flow of operation (How to Start a Business with a Partner, 2010). 5

7. To ensure the highest probability of success between the two partners would entail seeing how good the communication between them both truly is. It is recommended that, prior to taking on the responsibilities of a new company, time is allocated to test the chemistry of the individuals (How to Start a Business with a Partner, 2010). 6

8. Show me the Money The money needed to fund the initial startup cost must come from somewhere. Where are the best places to seek this capital? 7

9. Where to look? Two main scenarios would be either to have the money needed for startup, or finding a means to acquire it. If the entrepreneur has assets of their own, such as properties or 401ks, they can chose to sell them (Entrepreneur, 2010). 8

10. Loan Options Different loans can be taken out to cover for what else is needed. These loans can come from a bank or another person. Both these options should be thoroughly analyzed because failure to payback these loans will take its toll on the success of the company (Entrepreneur, 2010). 9

11. To infinity and beyond At this point it would be pertinent to have mapped out how long the investments can be turned into profits, but there are things to consider before doing so. 10

12. What can you do for them? Each type of business would either provide a service or a product that can last for a certain duration. The service provided can be a one time appointment or it can be periodically. A product might last a lifetime or might need to be replaced when it is exhausted (Seibler, 2010). Both these two factors can play a role in when profit margin can be seen. 11

13. Marketing Who is the services provided to? Who is going to be buying the product? The answers to both these questions would help plan in marketing to the correct audience. Marketing to the right audience can greatly boost one’s sale’s revenues (Seibler, 2010). 12

14. THE BREAKDOWN The success of a company doesn’t come without hard work and planning. Deciding for a partnership Deriving the initial capital Roadmap for profits A vast majority of starting up a company is the initial steps needed to find and planning for funding. 13

15. References Entrepreneur. (2010). Startup Financing. Retrieved September 28, 2010, from: http://www.entrepreneur.com/money/howtoguide/article52718.htmlhttp://www.entrepreneur.com/money/howtoguide/article52718.html. McNamara, Carter. (2010). Preparation for Planning a Business Venture. Retrieved September 28, 2010, from: http://managementhelp.org/strt_org/prep.htm.http://managementhelp.org/strt_org/prep.htm Siebler, William. (2009). Ideas and strategies that make you more profit. Retrieved September 28, 2010, from: http://www.zeromillion.com/marketing/make-profit.html.http://www.zeromillion.com/marketing/make-profit.html undefined. (2010). How to Start a Business with a Partner. Retrieved September 28, 2010, from: http://guides.wsj.com/small-business/starting-a-business/how-to-start-a-business- with-a-partner/http://guides.wsj.com/small-business/starting-a-business/how-to-start-a-business- with-a-partner/. 14