Week 8 Reading Reflection

Chapter 8: Sources of Capital for Entrepreneurs

One thing that surprised me was the concept of intermediate loans given out by commercial banks.  I was surprised by this because these loans require repayment and often times a collateral, such as machinery, stock, real estate, and other assets.  One thing I was confused about was the Social Lending portion of the chapter.  What makes social lending more efficient than getting a loan from a bank?  There are still interest rates and an allotted time-frame to repayment of the loan. 

The first question I would ask the author is "what is your recommended 'balance' between debts and equity for an entrepreneur?"  I would expect a ratio of around 35-40% equity, and 60-65% debts.
My second question would be "exactly how complicated, lengthy, and expensive can the process of raising equity capital be? And is going through this process worth the possible loss of money if the stock offerings are not as successful as originally thought?"

I honestly could not find anything that I thought the author was wrong about.  Probably due to the fact that I am not all that familiar with this subject.  I sure hope he wasn't wrong about anything, because I believe all of this information from the chapter.

We are Half Way There Guys (Half-way reflection)

So, you've decided to take entrepreneurship?  Good for you.  This is an excellent class that teaches some crucial skills for entrepreneurship and beyond, but you have to be willing to put in the work and make the most of each assignment.  Behind each assignment is an aspect of entrepreneurship, it is your job to find it and put it to use.  Sure, it is so much easier to do the bare minimum, doing just enough to be able to click the declare button and get your point, but if you do that then you are missing the point of this class.

Don't think of each assignment as a chore, but as an opportunity to put your skills to the test.  There is no better chance to learn the fundamentals of entrepreneurship than through a class specifically geared towards teaching you.  My advice to you would be to not think of this class as several small assignments, but as one big process of building your own business.  Each assignment is a step, and with each one you check off, you are that much closer to making your idea a reality.  Be sure that you decide to create something that you are passionate about.  Don't simply think of some BS idea so you can have something to turn in, make it count and make it great!

I know that you have been told in the past that "what you get out of each class is what you put into it."  I also know that you probably just disregarded that comment (I'm speaking from experience here).  But nothing is more true, and its even more true for this class.  There are going to be times when you keep pushing an assignment til the last possible minute, and there also going to be times when you just don't feel like doing the assignment at all.  This class pushes you out off your comfort zone, a lot, and yes I am referring to those interviews.  But it is at these times of pure cowardice, laziness, and weakness, that you must choose to rise up and not take the easy route.  If you really want it that badly, if you really want to be successful in anything, then you have got to give it your all.  That is my advice to you, I truly hope that you choose to conquer this course, not just pass it.

Also, the teacher is pretty cool (extra credit?)