BUSN 70 Lecture Notes - Lecture 10: Professional Wrestling Throws, Brand, Small Business Administration
13 Mar 2021
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Document Summary
Often, the small-business owner has to put up a significant percentage of the necessary capital. Small-business owners often use debt financing from banks or the small business. Referred to as equity financing because the owner uses real personal assets rather than borrowing funds from outside sources to get started in a new business. The owner may bring useful personal assets (such as a computer, desks, and other furniture, a car or truck) as part of his or her ownership interest in the firm. Higher percentages of ownerships kept if using banks for loans. Utilize own resources (laptops) if possible to minimize costs. Persons or organizations that agree to provide some funds for a new business in exchange for an ownership interest or stock. Venture capitalists hope to purchase the stock of a small business at a low price and then sell the stock for a profit after the business has grown successful.
