Working Capital funds the cost of the labor & materials that go into the goods you sell (or the services you render) and what you use to pay for salaries, rent, office supplies, etc (i.e., your operating expenses).
The basic structure of your Income Statement determines whether you should fund your Working Capital from Equity or […]
Working Capital funds the cost of the labor & materials that go into the goods you sell (or the services you render) and what you use to pay for salaries, rent, office supplies, etc (i.e., your operating expenses).
If you do not put up enough money for Working Capital –whether from Equity or Debt, you […]
Working Capital funds the cost of the labor & materials that go into the goods you sell (or the services you render) and what you use to pay for salaries, rent, office supplies, etc (i.e., your operating expenses).
After you are convinced that you have a marketable product or service and there is an accessible market […]
If you do not put up enough money for Working Capital, you will be forced to incur debt or inordinately prolong accounts payable so that you get into trouble with your suppliers. Not having adequate Working Capital will place your business in an unsustainable cycle of debt.
After you have determined the amount you need […]
After you have determined that you have a marketable product or service and there is an accessible market sufficient to meet your profit objectives, you want to know how much money you need to put up for the business (Equity). Oftentimes, the focus is on the fixed assets; e.g., office improvement, production & office […]
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