1. Business Technology Mr. Bernstein Greene, pp 238-245: Finance Your Business December 2, 2013

2. Business Technology Mr. Bernstein Finance Your Business Estimate Your Startup Costs Complete a Personal Financial Statement 2

3. Business Technology Mr. Bernstein Equity Capital Selling slices of ownership Equity investors are entitled to share of profits May or may not have decision-making rights Sources Personal contributions Family or friends Venture Capitalists 3

4. Business Technology Mr. Bernstein Debt Capital Borrow money and pay interest on outstanding balances Secured Loans are backed by collateral Unsecured loans have lower status in the case of bankruptcy and liquidation Sources Banks Family or friends SBA or other government agencies 4

5. Business Technology Mr. Bernstein Debt Capital Types of debt capital Line of credit (small fee even if money if not accessed) Long-term loan (typically >1 year) Accounts receivable financing Inventory financing What types of debt might be appropriate for the Dog House? 5

6. Business Technology Mr. Bernstein Debt Capital What makes lenders comfortable their loan will be repaid? Solid business plan Track record of sales and profits Entrepreneur experience in the industry Entrepreneur equity capital Debt-to-equity ratio How can the Dog House address these lender concerns? 6