People have many dreams of owning their own business one day. Their are many things in which one would have to consider before getting started; one thing in particular is developing a business plan and to choose which type of financing that will be used in order to get their business started. “So what make up a business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.” [ (Business Plan, 2011) ] During this discussion one will compare three business projects to determine who should have the highest discount rate reflecting risk inherent in the business plan and who should have the lowest rate. One will first start by outlining as to how to go about creating a business plan. “There are nine steps in which to consider when developing a business plan; which are audience and funding type, business plan outline, research and information collection, collection files, general industry overview, analysis, financials, executive summary, and review and editing.” [ (Zahorsky, 2007) ] First, one will examine audience and funding type. When developing a business plan the first thing to consider is who will be reading the business plan in lure of its audience. This is a very critical step; one should be ready to address the potential pros and cons to the audience so that they have a general understanding of the proposal and demonstrate their knowledge of expertise. Then there are two types of funding, which are debt and equity financing. “Debt financing means borrowing money for your business, whereas gaining equity financing entails injecting your own or other stakeholders’ cash into your company.” (Rath) If one had to choose, I would select debt financing because you have full ownership of your business versus equity financing were as to having several...
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