1. Choose an example of a type of new company you could start, and then use this company idea to answer the questions below. You might choose to open a hair salon, a babysitting service, a record store, or many other things. This can be the same type of company you chose in assignment 8, or it can be different.
a. Describe the type of company you chose. (1-2 sentences. 0.5 points) The type of company I choose would be an exotic pet shop.
b. If you needed to get funding for your company, would you prefer to get debt funding or equity funding? Explain why you would prefer this type. (2-4 sentences. 2.0 points) Personally, I would prefer to choose debt funding. That way I wouldn’t have to share part of my company. Not the biggest fan of sharing (:
c. If you needed to get funding for your company, describe at least two sources of funding that you would prefer. Explain why you would prefer these sources of funding. (2-4 sentences. 2.0 points) Like I said in an earlier question, I would use debt funding. And hopefully get money from angel investors. d. List at least four operating costs your business might have. (1.0 points) location, supplies, employees, equipment, administration and cash reserve.
e. Consider the industry of your company and the current economy, and then explain how these factors might impact your company’s sales. If you do not think these factors would impact your sales, explain why they wouldn't. (2-4 sentences. 2.0 points) In the current economy buying supplies might be more expensive than they would in a better economy. Paying for employees would still be about the same. Location might be really rather easy, Deepening on whether or not there’s a pet shop nearby.
f. If you had $5,000 to start this company, which department would get the most funding? Which department would get the least funding? Which phase of the business would be the most expensive? (2-4 sentences....