Raising Entrepreneurial Capital

Companies typically follow some version of the following stages.

. Development/C onception: The business is in the idea stage, has no

customers, or is not yet able to provide the product or service being

offered. At this stage the owner wears virtually all of the hats, and the

owner and the business are indistinguishable. Financing at this stage

comes largely from the owner .

. Start-up: Facilities, equipment, and employees are acquire d to com-

mence production. Start-up costs lead to negative cash flows that are

typically covered by the owner, friends, and family.

. Early growth: The business has a demonstrated workable business

model. Revenues may ...