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Envionment of Business - Funding a Business Venture

In: Business and Management

Submitted By sblanks
Words 662
Pages 3
Environments of Business – Funding A Business Venture
Susan Blanks
AIU Online

Abstract
After Susan had made the decision to license her technology as a means of funding her business, she had to decide what type of licensing contract she wanted. She decided that she would negotiate a contract for a combination of an up-front fixed fee and a per unit output royalty. She made this decision based on the fact that she and the licensee would be competitors and the realization that the threat of imitation was credible and that the cost of imitation was positive. She knew that because her technology was going to improve the licensee’s profits that she would benefit financially as well. She chose to license her technology in the domestic market because she discovered that depending on the county, government policy might prevent competition in the licensee’s market. Susan knew that this was just the beginning and that she still had a lot to investigate and learn, but she felt up to the challenge. She was amazed to discover that there was so many avenues one could take when trying to fund a business.

My preferred source of funding is to license the technology. Unit 2_Glossary.pdf, when a company develops a special, unique, technology it will frequently allow other firms to license that invention, in return for giving the firm, which developed it, a share of the revenues the second firm earns.
I chose this source of funding because I didn’t want to borrow from a bank because I didn’t want start the business with debt financing. I think that this decision speaks to my fear of owing anyone. I know that in the business world that this is expected and that it is virtually impossible not to borrow especially when you need to expand or you need to purchase more equipment or inventory, and a loan may be the only option available. I know that I will have to change...

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