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Leslie Wright

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Financing a New Business
Heather Smith
AIU online

Abstract
Starting a new business takes time, careful planning, and most of all money. You need to make sure you have a solid plan and good marketing strategies. It is important to decide whether you want to go into business by yourself or with other people. You have to make sure you have a backup plan in case the business is not successful and you lose money. Starting a business can be unpredictable and risky if you do not do your research.

Financing a New Business It was a difficult decision to make, but borrowing money from the bank is best for my business. It would be best to keep things simple until the product proves to be a consumer interest. Hopefully, the money borrowed is not too much and can be paid back in little time. The pro of my decision is that the money made is self profited .This would allow me to have complete financial control. The cons could be having a business flop and having to incur all the debts alone. Then there will not be enough profit to repay the bank and other resources that were utilized. It is also a downside to having to create a working environment by yourself and to do all the marketing without help. This could have a serious financial impact on the family as well. A second option would be licensing the technology. It has been a very popular and effective method. This could be useful because another more established company could market the product better. They may have more money to tap into more resources, and it could salvage any losses occurred. Some profit is better than no profit at all. It would be kind of a gamble since this method has to be carefully researched too. You would have to make sure you are still getting your percent of the profits and that you still have rights to the idea. There may be trial and error with either decision, but starting a

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