DISCUSS RIGHT

· Imagine you are an entrepreneur with a new idea and would like to start a business with your idea, but lack capital. Go to the U.S. Small Business Administration’s Website, located at http://www.sba.gov/content/sbic-program , and read about the Small Business Investment Companies (SBIC) Program. Also, explore the Website for information regarding sources available for providing venture capital. Provide an overview (two to three [2-3] paragraphs) of your start-up company. In the overview of your company, describe its products, historical financial performance, major capital investments in the last five (5) years, past sources of financing, and plans for future expansion.  

· Analyze two (2) sources that might be available to provide venture capital for your start-up. Compare and contrast the major advantages and disadvantages of one (1) over the other. Select the source that you believe is a better fit for your start-up and justify your selection.

· As we look toward the final weeks of this term, you will notice that we will be covering only one chapter per week, instead of two.  Plus, the chapters will be available on the book’s website, and not in print.  The first chapter is Chapter 27, which covers “Providing and Obtaining Credit”. 

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· As a business, you will be selling your products to other businesses, and usually allowing other business to pay you in the future.  This is granting credit, and creating a receivable.  When your business grants this credit, your business needs to have a credit policy established for several factors associated with the granting of credit.  Factors such as the amount, the terms, who will you allow to have credit, what if they don’t pay on time, will you be providing discounts for early payment, etc. 

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· Your first discussion question asks you to explore how to obtain bank financing or Small Business Administration (SBA) financing.  This is a very interesting question and one that I know a lot about.  Having been a banker for a part of my professional career, I am very familiar with bank and SBA lending.  Also, I am on the Board of Directors of Florida First Capital Finance Corporation which is a SBA lender.  I am active daily in SBA loans.  Further, my dissertation for my doctoral degree was on SBA lending.  I am familiar with this information. 

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· The second question is a bit more challenging, and asks you to think outside of the box.  You are to think of a company that you want to start, and then think of ways to raise money for this company.  Your ‘e-activity’ points you to a SBA website, which is a good start. But you need to really dig deep and come up with ways to finance a new company.  I am personally facing that issue right now for one of my friends from college. He has a new venture, and is asking my help to get it off the ground.  Therefore, your comments may help me in the real world as well. 

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