Essentials of Entrepreneurship and Small Business Management + Business Plan Pro, Entrepreneurship: Starting and Operating a Small Business
The Question
Having acquired sufficient knowledge and skills on financial management for small
business, you must demonstrate practical competencies in constructing financial
statements and in conducting feasible financial forecasting. As a new entrepreneur
understanding financial management...
MNE3701 Assignment 6 (ANSWERS) Semester 2 2024 - DUE 8 November 2024
MNE3701 Assignment 5 (ANSWERS) Semester 2 2024 - DUE 25 October 2024
MNE3701 Assignment 4 (ANSWERS) Semester 2 2024 - DUE 11 October 2024
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Entrepreneurship and Small Business Management
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MNE3701
Assignment 3
Semester 2
DUE 27 September 2024
, QUESTION 1: Financing Your Business
As a budding entrepreneur planning to start an artisanal bakery, I have several
financing options available to fund my business operations. Below are specific
financing methods and the rationale behind my choices.
Personal Savings:
Example: Prior to launching my bakery, I would save a portion of my income and set
aside funds specifically for the business venture.
Motivation: Using personal savings provides full ownership of the business without
incurring debt or giving up equity. This method fosters a strong sense of commitment
towards the success of the business, as the investments come from my own
resources.
Family and Friends Loans:
Example: I could approach family and close friends to invest in my bakery. This
could involve informal loans or small investments in exchange for a share of profits.
Motivation: This type of financing often comes with lower or no interest compared to
institutional loans, creating a supportive environment. Moreover, these investors are
often more forgiving regarding repayment terms.
Crowdfunding:
Example: I would launch a campaign on platforms like Kickstarter or Indiegogo to
raise funds. I would offer incentives such as personalized baked goods or discounts
for early backers.
Motivation: Crowdfunding is effective in gauging market interest while simultaneously
securing funds. This approach also serves as a marketing tool, generating buzz
around the business before it officially launches.
Bank Loans:
Example: I might apply for a small business loan from a bank to cover substantial
initial costs, such as renting a storefront and purchasing equipment.
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