Funding a Business Venture Essay

868 Words 4 Pages
AIU Online

Mrs. Bourne informs her readers of her viewpoint on investment bankers, the stock market, financial management, and risk financing. She then informs the audience of her and her business partner’s financial choice for starting their small business. The author wants the readers to understand why she and her partner made the choice that they made and what their second financial option would be if needed. She will describe the positives and negatives of each of their choices.

Funding a Business Venture
Investment banking is strictly buying and selling businesses for a profit. Investment bankers come up with a company’s value and buy the company from the owner, only to turn
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A business owner simply thinking ahead can save his or her business! Mrs. Bourne and her business partner have decided that they need to find the right financial path for them and their small business. They have been thinking about and researching the pros and cons of borrowing money, selling stocks, and licensing her technology. Mrs. Bourne and her partner are aware that they should have a main plan and a backup plan in case they run into trouble. The financial option that they decided fit them and their small company best is to borrow money. Therefore, they would take out a small loan from a bank. The pro of taking this financial route is that Mrs. Bourne and her partner will still have complete ownership of their product and business. This means that all profits for their product will come directly back to their pockets and their company, not a third party. The cons of this financial decision are: there is a chance that they business partners will not be approved for their business loan, the partners will owe interest on the loan, the interest rate may be extremely high, and the partners still owe the debt if the business fails. The second financial option that Mrs. Bourne and her business partner agreed on was licensing their technology. This is when a business licenses another company or individual to use or sell their product or idea. There are many pros and cons with licensing technology also. The pros of licensing the hair

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