Question

Identify possible sources for investment capital if required (friends, family, banks, USSBA, etc.). Identification of whether investment capital sources are needed and, when needed, identification of sources is complete and thorough, and demonstrates its relationship to the total financial plan.

Company is a Coffee Shop that markets in Christian Communities and locations.

Answer 1

Following are some possible sources of Investment capital for a Coffee Shop:

• Personal Savings;
• Love Money - Money invested from friends, family and spouse;
• Venture Capital Money;
• Bank Lending;
• Government Grants and Subsidies;
• US Small Business Administration;

Various Capital sources have their pros and cons of their own. Capital sources satisfy their job as per their need and depend on the business needs on time to time basis. Personal savings and love money is limited but doesn't come with external obligations - However, when the need of funds is large and cannot be satisfied with personal funds then bank loan and other lending comes as last resort.