Explain in detail how the financing works

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Reference no: EM133299348

Case: Austin has been snowboarding since he was two and is fanatical about the sport

He lives, breathes, and sleeps snowboarding. After trying multiple materials, Austin has created a new material for making snowboards that is lighter and more durable than anything currently on the market. Snowboards made from his material are basically indestructible, very light and with the right wax, extraordinarily fast. Austin is sure his product will be successful but to begin manufacturing his snowboards, he needs capital, a lot of capital. He will also need capital to create his marketing campaign. He is hopeful that a 2018 Olympic medal holder like Shaun White will begin using his snowboard and then endorse the product. This too will require a lot of money. Austin projects that to take his business from the successful idea stage to successful profitable stage will require $500,000. He has $50,000 cash he can immediately invest into his business. Austin is passionate about his product. He knows it will have a huge positive impact on the snowboarding industry worldwide.

Directions: Choose three of the following sources of capital you think Austin should consider. For each source write a paragraph that explains in detail how the financing works, and at least 2 well explained pros and 2 well explained cons of using it for his business, and why you think it would work for him and his business..

Sources of Capital: 1) Commercial banks (secured and unsecured term loans), 2) crowdsourcing, 3) SBA loan, 4) credit cards, 5) venture capital firms,6) angel investors, or 7) family and friends

Reference no: EM133299348

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