Entrepreneurship, Second Edition

11.15. YOUR OPPORTUNITY JOURNAL

Reflection Point

Your Thoughts ...

What sources of capital do you have? Are you willing to take on a home equity loan? Use your personal credit cards? How much of a "nest egg" do you need to feel comfortable pursuing a new venture? What do you expect your cash conversion cycle to be? Is there a way to improve it? What accounts receivable terms are common in your industry? How should you manage accounts receivable? How much inventory does your business need to carry to avoid stock-outs? What terms can you get on inventory (accounts payable)? Can you finance your accounts receivable? What means (bank loans, factoring, etc.) are most available to you? Can you get loans on your inventory? What short-term loans are needed for your business (e.g., line of credit)? When will you be bank creditworthy?