Title: Explore sources of capital and financing methods for an entrepreneurial fashion business.
Course: Fashion Marketing, Advanced (12153-II) > Section: Exploring Entrepreneurship

Exploration should include sources such as

- family and friends
- self-financing (i.e., bootstrapping)
- banks
- grants
- crowdfunding
- venture capitalists
- angel investors.

Exploration should also include

- benefits and drawbacks of the various sources
- risk and reward of funding sources
- effectiveness of a particular alternative source to a particular business.

Exploration should address the concept that financing/credit is important to the entrepreneur for the purpose of purchasing start-up goods and maintaining cash flow for the business.

Process/Skill Questions:

- What are some common sources of financing?
- What are new or emerging types of financing?  How has crowdfunding changed entrepreneurship?
- What is bootstrapping? How could it be used to get a new business off the ground?
- What should an entrepreneur consider when calculating startup costs?
- What is the advantage of Small Business Administration (SBA) loans vs. traditional bank loans?
- What financing options carry the highest finance charges/interest rates?
- What are the three main types of capital an entrepreneur or business owner should have?
- What is the biggest expense for most small businesses?
- What role does purchasing or factoring play in the success of designers and retailers?