Key 1 – You gotta have a plan Simple, right, well it is but you have to do it. If you don’t have a plan chances are you don’t achieve what it is that you want. You end up getting discouraged and bam, you start to give up or give in to fear. All goals…
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Lenders expect working capital loans to be repaid through cash generated in the short-term operations of the business, such as, selling goods or services and collecting receivables. Liquidity rather than overall profitability supports such borrowing programs. Growth capital loans are usually scheduled to be repaid over longer periods with profits from business activities extending several…
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Forecasting the need for capital, whether debt or equity, has already been discussed. The capital to finance a business has two major forms: debt and equity. Creditor money (debt) comes from trade credit, loans made by financial institutions, leasing companies, and customers who have made prepayments on larger–frequently manufactured–orders. Equity is money received by the…
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Identifying the actual cost of doing business requires careful and accurate analysis. No one is expected to calculate the cost of doing business with complete accuracy. However, failure to calculate all actual costs properly to ensure an adequate profit margin is a frequent and often overlooked cause of business failure. Establishing Selling Prices The costs…
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