Accessing and acquiring funding a key resource for entrepreneurial firms is access to financing, yet many entrepreneurs raise money in a haphazard manner simply because they are not experienced at raising funds or because they are unfamiliar with their options. Imagine that you are the founder of an internet-based company that plans to sell products to extreme sports enthusiasts, such as surfers, snowboarders, BMX bikers, and skateboarders.

Describe the choices that you would have for raising funds. How would you determine what was the most appropriate choice for your business? Once you determined the most appropriate choice, describe how you would seek funding or financing from that source. If you decided to bootstrap your business initially, make a list of the ways you would raise start-up funds and/or economize on costs, absent debt financing or equity funding. What are the unique challenges and the specific payoffs to bootstrapping a business?

Discuss the advantages and disadvantages of raising equity capital versus obtaining a bank loan to fund your business. Which approach would require you to grow your business more aggressively? If you obtained a bank loan, describe the relationship you would anticipate having with your banker and what his or her expectations would be. If you obtained funding from a business angel or a venture capitalist, describe the relationship you would anticipate having with your angel investor or venture capitalist and what each person's expectations would likely be for your business.

Suppose you pitched your business idea to and were rejected by 10 venture capital firms. is this an indication that you have a poor idea? If you are able to get your business launched with loans from friends and family, on what type of trajectory would your business have to be in order to attract the interest of the same venture capitalists 2 years from now? Brainstorm creative sources of financing for your online business.

What types of strategic partnerships, grant programs, leasing vs. buying, and other creative approaches to raising funds might be appropriate for your business?