Financial Statement Analysis

BUS521- Entrepreneurship and Innovation
March 02, 2011

Question: Discuss the sources of funding of the new venture and the rationale for using each source.
The securing of funding for a new venture is perhaps the most difficult part of the venture start-up process (Hisrich, Peters, & Shepherd, 2010). The sources of funding for a new venture entry may be varied in such forms as Self, Family and Friends, Suppliers and trade credit, Commercial banks, Government Loan programs, R&D limited partnerships, Private investors (angels) Venture Capital, Private equity placements, Public equity offerings and other government programs (Hisrich, Peters, & Shepherd,2010). The Ready Clip will plan to seek funding or financing by using the Self of Personal Funds from the above referenced methods list. T he Self or Personal Funds source of funding method is the most utilized funding or financing for venture start-ups, as well as being the least expensive for cost and control (Hisrich, Peters, & Shepherd, 2010). The low cost and control of the Personal Funds is of particular interest to the Ready Group Members, as that we are still analyzing the ventures opportunity for success as well as weighing the passion and financial commitment levels of the Ready Clip Members. The level of commitment is generally reflected in the entrepreneur’s percentage of the total assets and not the necessarily the amount of money the entrepreneur has put into the venture (Hisrich, Peters, & Shepherd, 2010). The Group is prepared at present to infuse $3,000.00 for marketing and prototypes of the Ready Clip. A marked interest from potential investors r as a buy-out groups must be noted within a determined trial period or the break-even point, which at this juncture the new venture entry will be discontinued as that the Ready Clip Group would be