Tag Archives: capital

Which Loan is Best for Starting a Business?

For a start-up company, financial strategies for business are important to cover a lot of expenses and to give you enough resources to keep on moving forward as you start generating profit–and here is where start-up business loans come in. From your working capital, inventory, to real estate and equipment, sometimes your funds on hand are not enough. Which loan is best for starting a business?

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Working Capital? | Definition

Working Capital is a common measure of the health of your business operations. Knowing how to manage working capital is a crucial aspect of financial procedures. Working capital refers to the funds required to operate your firm on a daily, weekly, and monthly basis. It is the money used to pay your suppliers for materials, as well as the money needed to pay for the items and services (such as inventory and payroll) that you have utilized while waiting for your customers to pay you. Continue reading Working Capital? | Definition

Weighted Average Cost of Capital (WACC)? | Definition

We know that a good Return on Invested Capital is required to attract investors, but we also need our cost of capital (i.e. debt interest) to be lower than our Return on Invested Capital (what we do with investor money). The idea is to find cash for as little as possible and then invest it in projects within your company that will return as much as possible for less than the cost of capital. What is the weighted average cost of capital (WACC) and how is it calculated?

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How Do I Start a Successful Home Health Care Business?

The generation of people who were born between 1946 and 1964, the baby boomers, are gradually phasing out of the workplace. They are retiring in large numbers and many of them will require special care and services in retirement. This has created a business opportunity for people who can provide healthcare services. How do I start a successful home care Business?

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How Do You Figure Out How Much Cash a Company Needs?

Business Capital is the most critical component that fuels your company and keeps it safe from sharks in the banking world. Without it, organizations can’t grow. or you may be bootstrapping your startup, but how do you figure out how much cash a company needs? Continue reading How Do You Figure Out How Much Cash a Company Needs?

Pros and Cons of Bootstrapping Your Startup

Guerilla style bootstrapping is one of the most common paths aspiring entrepreneurs take. No matter what kind of business you’re in or whether you succeed or not: everyone respects those who put in the hustle. Bootstrapping is a romanticized idea. But, even though it can help you make it big, it also has its pitfalls. Here are the pros and cons of bootstrapping. Continue reading Pros and Cons of Bootstrapping Your Startup

What Is Your Business Return on Invested Capital?

Profit is used to drive growth, which is one aspect to your cash needs. But what are you going to do with the excess cash from your business? Your options include purchase assets, spend it on various expenses, hold it in an investment account, pay down debt, or give it back to the shareholders. Do you have a Return on Investment plan for your capital? Continue reading What Is Your Business Return on Invested Capital?

How to Manage Working Capital

One important topic on finance processes is knowing how to manage working capital. Working capital is the money it takes to run your business on a daily, weekly, and monthly basis. It is the money used to pay your suppliers for materials and the money needed to pay for the goods and services (i.e. inventory and payroll) you have used while you wait for your customers to pay you. Continue reading How to Manage Working Capital