Discussion Board Number Three

Liberty University

Introduction
“Cash is king" is a common line found in the business world. Cash flow is the life-blood of a company and without it a company will fail (Hicks, 2012). There are many things that can occur that makes companies take risks that could potentially jeopardize their cash flow such as new projects, growth, capital budgeting. The Chief Financial Officer (CFO) of TaxCats, a struggling tax preparation company is assigned to fix the problem and help with the company’s cash flow. The company still has a positive cash flow, at best it is minimal. Unless there are changes done at the company, it will go under soon. Luckily, the product development department has recently created a new product that will revolutionize how the industry does business. The only problem is that the product is still two years away from being able to be sold to the public, and the company’s cash will run out within the next six months.
Obtaining Funding
According to Goins and Little (2014) the first source of funding look at when searching for additional funds is crowdfunding. Crowdfunding allows for a smaller pool of investors to fund the company with less restrictions. It is allowed under the JOBS Act that launched January 1. It is geared towards the early stages of business and can be combined with venture capital funding. It can ideally be used in the early stages of a business, especially if you don’t qualify for a bank loan, and don’t have angel or venture capital funding. Additionally, according to Buol (2013) with crowdfunding, individuals can contribute small amounts via online campaign, started in the late 1990s and has been used to fund bands, movies, art projects and inventions. The Jumpstart Our Business Startups (JOBS) Act signed in April 2012 opens the doors for startups to solicit equity financing from the