Obtaining Startup Funds- A Taste of Amy’s Touch|Course hero helper

Posted: February 20th, 2023

Obtaining Startup Funds- A Taste of Amy’s Touch

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Write a 1–2-page overview of your strategy for obtaining startup funds and working capital that you have identified for your business plan. Also, address the following:

· Describe the startup funds and working capital that your business would require and explain in general terms how the funds would be allocated.

· Explain your strategy for obtaining the necessary funds for your business.

· Identify at least two common sources of funding that you rejected and explain why you decided not to use them as a funding source.​​

 

SOLUTION

As a continuation of my business plan, “A Taste of Amy’s Touch,” my strategy for obtaining startup funds and working capital is to seek a combination of funding sources to meet the required capital needed to establish and grow the business.

In general, the startup funds required for the business include the cost of leasing a commercial kitchen, purchasing kitchen equipment, raw materials, packaging, website development, and marketing expenses. Working capital is also necessary to cover the initial operating expenses such as rent, salaries, utilities, and insurance.

To finance the startup, I have developed a multi-faceted approach that includes personal investment, crowdfunding, and loans. Initially, I plan to invest personal funds to cover a portion of the startup costs. Next, I will seek crowdfunding from online platforms such as Kickstarter and Indiegogo to generate additional funds from a large group of investors. This will provide an opportunity to showcase my unique product to potential customers while gaining financial support. Lastly, I plan to secure a small business loan from a financial institution to cover the remaining startup costs and initial operating expenses.

Two common sources of funding that I rejected include venture capital and angel investors. The primary reason for rejecting these sources is that they typically require a high degree of ownership and control in exchange for their investment. Additionally, seeking funding from these sources often involves a lengthy and complicated due diligence process, which could delay the startup’s launch.

In conclusion, securing adequate funding is critical to the success of any startup. Therefore, my strategy for obtaining startup funds and working capital includes a combination of personal investment, crowdfunding, and small business loans. This approach will enable me to acquire the necessary capital while minimizing the loss of ownership and control in the business.

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