bootstrapping/
personal savings
personal savings
✧.* What is bootstrapping ?
✧.* Bootstrapping is starting a business through personal savings or personal income!
༉‧₊˚. What is a bank loan?
༉‧₊˚. Bank loans are a financial agreement where you borrow money from a bank or credit union, with an agreement to pay it back overtime.
｡˚ ❀ what is angel investing?
｡˚ ❀ Angel investing is when individuals with a high networth invest in startup businesses for a share of ownership in the company.
⋆｡˚ what is crowd funding?
⋆｡˚ crowd funding is raising small amounts of money from a large number of people, through either connections or online platforms.
˚.♡ what are friend/family loans?
˚.♡ friend/family loans are from when you borrow money from a friend or family member to start a business.
✧.* What are common sources in bootstrapping?
✧.* Personal savings (personal credit, savings, retirement funds, etc.)
✧.* Customer revenue
✧.* network and support (connections)
༉‧₊˚. what is collateral?
༉‧₊˚. Collateral is an asset or valuable property that a borrower promises to give a bank if they fail to repay a loan!
｡˚ ❀ What is venture capital?
｡˚ ❀ Venture capital is firms that invest in startups in exchange for ownership in the business!
⋆｡˚ what is kickstarter?
⋆｡˚ Kickstarter is an online crowdfunding platform for entrepreneurs to raise money from the public to launch new products or projects!
˚.♡ what counts as family/friends?
˚.♡ Family would be parents, siblings, or other immediate family members!
˚.♡ Friends would be a trusted individual, social group, colleague, or roomate!
✧.* what is revenue?
✧.* Revenue is the money directly from customer sales thats reinvested back into the company for fundings and growth!
༉‧₊˚. what is a credit score?
༉‧₊˚. A credit score is a 3 digit number from 300-850 that tells lenders how safe or risky it is to lend you money!
｡˚ ❀ What is seed funding?
｡˚ ❀ Seed funding is a startups first official round of financing, used to build a product, hire a team, and prove market demand!
⋆｡˚ what is gofundme?
⋆｡˚ gofundme allows entrepreneurs to raise small online contributions from a crowd to support a business!
˚.♡ what is a contract?
˚.♡ a contract is a formal agreement that outlines how money is provided, used, and repaid or converted!
✧.* name some actual bootstrapped companies !
✧.* Craigslist
✧.* Github
✧.* GoFundMe
(sry if u said another...(✖﹏✖))
༉‧₊˚. What is a business plan?
༉‧₊˚. A written document that proves to a lender your startup can get enough cash flow to repay the debt!
｡˚ ❀ what are shares?
｡˚ ❀ shares represent the individual legal units of a specific company that define exact ownership percentage!
⋆｡˚ what is equity crowdfunding?
⋆｡˚ equity crowdfunding is a method where startups sell small ownership to a large online crowd of investors!
˚.♡ what is a gift?
˚.♡ a gift is a financial contribution that requires no repayment and gives no ownership equity!
✧.* what is personal financial ruin?
✧.* personal financial ruin happens when a founder drains their life savings, personal finances, and personal credit to keep a failing business alive. this results in debt and full liability.
༉‧₊˚. what is the SBA?
༉‧₊˚. The Small Business Administration is an independent agency to help entrepreneurs start, build, and grow small businesses through counseling, resources, and partial guarantees on bank loans!
｡˚ ❀ what is an IPO?
｡˚ ❀ an initial public offering is when a private company sells shares to the public for the first time, this serves as a major "exit strategy" allowing angel investors and venture capitalist to cash out and realize their profits!
⋆｡˚ what is a refund?
⋆｡˚ a refund is a fundraising strategy where backers are guaranteed their money back if a project fails to meet its funding goal!
˚.♡ what is interest?
˚.♡ Interest on a family/friend loan is the cost of borrowing money from a relative or friend!