Currently, all funding for your used book store business comes from a rich relative. What other forms of funding (e.g. stock, bonds, venture capital) might be logical alternatives for your business and what would you need to do to qualify for them? How would the risks of such alternative funding sources compare with the risk of continuing to fund your business through a relative? Given this, how would you fund your business in the future?
Identify at least two financing options for your start-up company. Describe the option, how it works, and the risks involved.
The first level of financing for new business is often among the so-called "3 F's". Those are friends, family and fools.
As in your case, the rich relative.
Next level of financing is from what is called 'angel investors'. This transaction is one in which an angel investor could be interested because true venture capitalists probably wouldn't bother with transaction under $2M. The truth is that the most risk appears to be in projects in which Angel investors would be interested, and the higher risk demands a higher return. The following ...
The solution lists six options for financing your startup-company. The options cover a wide range of ideas from simple to complex, and from small to large. Each option is explained with two or three sentences, and several of them are cited for additional information.