Question

Outline the 'pro's and con's" of using outside capital (investors).

What is the difference between debt and equity funding?

What are the advantages and disadvantages of buying a business (acquisition)?

What are strategies to grow your business after launch?

What are different market development strategies?

What are the challenges that too much and too fast growth might have on a business?

What is the strategy when you sell deep into your existing customer base?

What does market diversification mean?

Describe demographics.

Internal funding vs, external funding. what is the difference?

What are the benefits of bootstrapping and cash flow financing.

Answer 1

1. the pros and cons of outside investors include the following:

pros: startups have not a problem, ventures with high risks are accepted, support and guidance are included.

Cons: funding is sometimes slow, rapid growth is expected, terms at time can be ambiguous.

2. Funds that are owned by a company towards another party is called debt. Whereas funds that are raised by a company by issuing shares are called equity.

3. The advantages of buying a business acquisition are the difficulty with building a startup has already been done and it will be followed by procedures and plans. Whereas, a major disadvantage could be the need for major improvements in terms of changing the old equipment and systems.

4. The strategies that are necessary for the growth of the business include building pf the sales funnel, utilization of the customer management system, creation of customer loyalty program, researching the competition, identification of new opportunities.

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