Often do we ask people who have opened businesses: "How does the capital you need when it first opened your business today?". Answers that often arises is: "... several million dollars, or twelve million dollars so ...." really is not it? In principle, there are numbers out. But, if you are asked like that, you can not be answered. Because usually when we want to run a business, many of us who do not know how to calculate it.Well, this time I will share a secret with you about how to calculate the amount of capital you need when you want to start a business.
In principle, in running the business, there are only three types of capital that you would exclude:1. Capital Investment2. Working capital3. Operational Capital
Let us discuss one by one.
1. INITIAL CAPITAL INVESTMENT
What does it mean an initial investment capital? This is the kind of capital you have to spend at the beginning, and is usually used for long-term. Examples of this capital is the building, equipment such as computers, vehicles, office furniture and other items used for the long term.If your business venture bike shop, then your initial investment capital is the building, workshop tools, and other furniture needed in the workshop. If your business stores, then your initial investment capital is a shelf, table, maybe even the cash register.Typically, this capital value is large enough as it is used for the long term. But the value of the Capital Investment will be needed from year to year even from month to month.
2. WORKING CAPITAL
It is capital that you need to spend to buy or make your merchandise. This working capital can be issued every month, or any coming orders.For example, if your business venture where to eat, then the working capital you need is capital to buy groceries. If your business development efforts made craft items, then your working capital is the money you spend to buy raw materials. If your business is photocopying services, working capital so you spend your money to buy paper, ink, and so forth.In principle, no working capital, you will not be able to complete your order or do not have the merchandise. Later, you might even not be a buyer because the goods are not there. That is the importance of working capital.
3. CAPITAL OPERATING
The last capital was operating capital. Operational capital is capital that you need to spend to pay monthly operating expenses of your business. payment of salaries, monthly phone bills, electricity, water, and even retribution.The posts in this operating capital in each business generally similar. This is because, in principle, is the operating capital is the money you need to spend to pay for items outside of your business expenses directly. Thus, Capital Operations are usually paid on a monthly basis.Well, easy, right? Now, you can calculate your own, you have to spend capital to start a business.
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