Other People's Money

Numbers upon numbers.

Key Knowledge

The finances required to start up a small business successfully come from a variety of sources. The primary way to obtain money is from loans from family and friends. The drawback of this form of financing is a close connection. This can cause trouble if you fail to repay the loan. These close people will expect you to repay them and will be more disappointed than others if you fail. Another good way to have enough money is to break into your personal savings and finance your own business. The only problem with this form is that personal savings accounts can be very limiting. Another way is to get loans from a bank. They will check your credit and then give you a loan based on that credibility. One last way to earn financing is from venture capitalists. These people invest in your business in exchange for partial control of it. In this way you can garner help and money for your budding store. While each of these have positives and negatives, using them in a combination will help you succeed. Before you can apply for these different aids, you have to forecast your need for financing and decide how much you will need. Using financial reports and estimated costs to add up your expenses will tell you how much aid to apply for. One thing to keep in mind is that you will lose a lot of money at first. This is totally okay, but you need to prepare for that. You have to weigh the benefits of the money with the costs to pay it back in order to make good financial decisions for your business. In conclusion, the many numbers and factors you must keep track of to finance your business are well worth the effort. They are immensely helpful in keeping  you afloat in the rough first months of your business.

My Journey

The reading quiz for this module was basically a vocabulary quiz. Most of the questions related to finding the term that best fit an example or vice versa. This made it very smooth and quick for me, which gave me more time for the math quiz. The math quiz was not hard, but it was very long and you had to perform a variety of tasks.
Sample math question.
As you can see in the picture to the left, there were some instances where common sense and critical thinking skills made the test much easier. In the aforementioned example, all I had to do was divide the year by five. That sounds pretty easy, right? The simulation gave me some problems at first. Learning how to read all of the different reports took some time, but I soon got the hang of it. After I learned what I needed to I went on the long journey to generate profit without debt. It took my business almost three whole months to make just a positive weekly profit without debt! This goes to show that you have to give it time. I thought that this last module was a great way to turn our mindset towards the real business experience, and I can not wait to get started.

No comments:

Post a Comment