[MUSIC] Hello learners, your resource inventory rated a particular resource as being highly accessible, accessible, easily reachable, and reachable. In this the first of three lessons from our fifth course in our specialization how to start a business. We will deal with how to expand those areas which before were only deemed reachable. In the running gambling context that we have been using for this discussion. Those resources that are highly accessible, accessible or easily reachable, are analogous to your state, what you're able to risk in attempting to reach your goal. Those resources that are simply reachable are analogous to finding someone who might stake you. What person or what source would be your hero, and swoop in with the added resources you need to make your business successful. At the end of the first part of this lesson, you will have some general idea, the type of funding needed to begin and to grow. In part two, you'll become more familiar with both traditional and non traditional means to gain that funding. The funds needed for a startup varies greatly depending upon the type of business. You may remember some of the statistics we shared with you in course one. Remember the 2009 Kauffman Foundation study that estimated that the average startup costs was approximately $30,000. At that same time, we reported a 2015 Ink Magazine study that reported the results of their survey, that was done by Intuit for 500 small businesses. That research showed the vast majority started their business with $10,000 or less. Now we know national franchises average an investment requirement of over a half million dollars. According to a 2011 Forbes article, home-based franchises, though, could be started with as little as $1000 to $5000. With these averages in mind, let's look at what is considered as the typical funding milestones associated with financing a small business. The first milestone you are approaching is the initial launch of your business. After sustaining the business and focusing on sales and survival, the next milestone is to get the business primed for growth. Putting the business in the position to respond to accelerate a growth when it doesn't back come. Such things as increasing staff are exploring new channels of distribution. After being prime for growth, the next milestone is growth itself. The business begins to approach the limit to which it can be scale. And as growth begins to stabilize and typically, its priorities shift to maximizing profit. Approaching it's scale limits and showing strong profit performance, the final two milestones are stabilization followed by an Initial Public Offering or leverage buyout of some sort. We have to recognize that the different types of businesses we've discussed will have different goals and thus different funding thresholds or milestones. Typically, a lifestyle business requires financing from zero to a half million dollars. That's a huge range, it's more in the line of perhaps zero to $50,000. These funds are required to support it's initial launch and the lifetime of its growth. This does not includes lines of credit to support day to day or week to week operational cash flow needs. Next would be what some call a Foundational business. This is a business born out of a market necessity, typically in a stable, mature industry, as opposed to an entrepreneur's passion as with a lifestyle business. Finally, we have a ventured backed or growth business. They typically require financing from 1 million to $10 million or more. You have not reached a point where you have formalized a budget yet. Well you now have a general idea of the funding milestones and the typical level of funding that might be needed to launch your business. The milestones shown here are initial launch, primed for growth, growth, stabilization and then ultimately either an initial public offering or a leveraged buyout. The typical range of funding needed is shown here as well. Of course which milestone becomes an actual goal for you, and the level of funding your business is going to need will depend in large part on the type of business you plan to start. Those types for a lifestyle, foundation and venture back or growth. In the continuation of this lesson, you will learn of both traditional and nontraditional sources of funding, for those organizations who might stake your business towards it's required and desired success. [MUSIC]