Able Planet Case Essay

1474 Words Apr 4th, 2013 6 Pages
Running head: Case 2 Able Planet

Case 2 Able Planet

Kelly Raines
Devry University
SBE 560 Contents
Abstract 3
The difficulties entrepreneurs face when raising between over $100,000 for their businesses 4
Ways Kevin Semcken can raise $1.5 million in capital 5
Memo to Kevin Semcken 7
References 9

Abstract
This paper will analyze Case Study 2 Able Planet. In this case study, Kevin Semcken, Able Planet’s CEO and chairman is seeking capital to finance existing operations for its current products, build a prototype for a new product and market both products to new and current customers (Scarborough, 2012). Furthermore, Able Planet is unable to secure financing from a bank due to a predicament in the economic
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Here are some steps to you must do before approaching investors or lenders for any amount of money:
• Gather together the documents that will help you secure funding from a backer and that indicate you are a good risk (Clifford, 2012). You will need: o A well written business plan, which will shows the backer not only why you want the capital but what you plan to do with the money; o Cash flow projections, which will show lenders and investors if you are able to repay the loan or offer a return on the investment. This will give backers concrete financial data that they can use to assess this risk; o A statement of your personal financial status, which lists your personal assets and debts to give the backer a fuller financial picture; o Past business tax returns: As this business is established and you have past business tax returns, it is a good idea to take them with you to the meeting. They will give the lender/investor a better idea of how your business is doing financially; and o A credit rating report: Your credit rating report shows loan repayment history and will help backers determine if you are a good risk.
Additionally you should:
• Line up your team (Clifford, 2012): This shows that you and the management team are able to execute the ambitious business plan you have presented and pay back your loan or generate a return for investors. Make sure you and your key people

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