Calculate The Capital Business

The current world economic crisis at this time caused unemployment increase. The number of firing that occurred and the lack of employment, all of that is the impact of world economic crisis.  And the impact  of all the problem are many people interested to open their own business. Besides, can sustain life of the family, but it also can help others by creating employment which is very necessary at this time.

Starting a business is not easy, the first thing we should know  how much capital is needed  to start a business that we want. So, how do I calculate the amount of capital required to start a business?
In principle, in running a business there are only 3 types of capital that you should know :

1. Initial capital investment
2. Working capital
3. Capital operations

Initial capital investment

Type of capital that you need to spent at the beginning  and is usually used for  long term.

Example : buildings, vehicles, office equipment, computers and other goods used for long-term. Usually this capital value is large enough because it will be use for long term, but the value of the capital investment will dwindle from year to year even can be from month to month.

Working capital

Capital that you need to spend to buy or make your merchandise. Working capital may be issued each month, or every order comes. Without working capital, you will not be able to complete your order or do not have the merchandise, and also you will not have a buyer or customer because the goods are not there. That is how importance of the working capital.

 

Capital operations

The capitals that you need to spend to pay the monthly cost of operating your business. For example : pay of the monthly bill : electricity, phone, employee salary payment, water and others expenses. Post operational capitals general is almost the same in every business because in principle the operational capital is that money you need to spend to pay for the cost of items outside of your business directly. So, capital operations are usually paid on a monthly basis.

So, if You know how to calculate the capital to starting business, donadzku sure you will be able running your business smoothly. 

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