Week 8 Reading Reflection

This week, we read about different sources of capital for entrepreneurs.  I was not surprised to hear how popular debt financing is.  However, I was very surprised that many entrepreneurs go to the bank with no idea of how much they need.  They just want to get some money, and they will use whatever they get.  The strikes me as something anyone with entrepreneurial aspirations should strive to learn quickly.  After all, failing to plan is planning to fail.  The only part that got a little confusing to me was the section with all of the different kinds of financing.  Preferred stock, common stock, convertible debentures, private placements, and IPOs are just a few of the ones listed.  The author listed so many different types of ways to raise capital.  I would have asked him what he would personally recommend, and when some ways were superior to others.  As this was something I don't have a ton of prior knowledge in, I didn't disagree with the author on anything this week.