Funding a Business Venture Essay

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FUNDING A BUSINESS VENTURE
Shamarcus Dickinson
April 4, 2013

As a new company starting out it will be extremely difficult to sell my company’s stock, being that the company is not yet incorporated. As a startup company the best way for me to raise money to fund my company will be to borrow it. I will first need to come up with a business plan and an accurate list of expenses so that I will know the amount that I need to borrow. The startup expense list will include material cost, product marketing and advertisement and labor.
I will then need to decide where I can manufacture the products. Is it going to be something that I can build and manage from home or do I need to start large scale with a retail location? Working from home many not add as many additional fees and expenses as a retail location would. A separator retail location much budget rent, utilities, licenses and labor. These are all monthly expenses that will have be reoccurring. Factoring that sells will not be high enough to cover these expenses, I will need to factor enough for a couple months of operation.
I will need to establish an accurate price list of all material and equipment needed to manufacture the finish product. Using trial and error, I need to create a prototype of my actual invention. Doing this I will allow me to test out the product. From there I will be able to replace and substitute material that’s not functioning properly. I will possibly be able to drive the total manufacturing cost down by substituting for cheaper less expensive parts.
I will be able to establish what type of equipment I need. Licensing the technology may still be an option on expensive items. This is the stage where I will be able to determine how long it takes to create the product and level of difficulty. I will be able to narrow down how much help and extra labor needed. All of this will play an important role in the amount of money needed for startup.
Creating a blueprint of the item and getting another company to manufacture the item. Leaving only the finished good for me to market and distribute.
After a finished expense list is created I will be able to accurately know the amount to borrow. I will be able to categorize my necessities and borrow only what I need. My exact borrowing ability will depend solely on my credit with the banks. This may be considered a con if I am not able to successfully borrow
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