Working capital is the main financial driver that allows a business to meet its current obligations and continue operating. Calculating the amount of working capital is very simple. Investigating the components and application of working capital creates a deeper understanding regarding the viability of a business and the soundness of its future.
Not having a working capital strategy is like trying to hit a target with your eyes closed. You may be able to shoot, but you’re very likely to miss the target. The same thing goes for businesses that do not have their business goals enabled by a working capital strategy.
Just about every entrepreneur requires outside funding to launch his business and keep it afloat. In some instances, it takes years for a business to turn a profit. Allying with financiers can keep a business alive until it generates a profit and eventually transitions into a self-sustaining entity. Here are some reasons why businesses reach […]
If you own or manage a business, you know that certain seasons produce more customer demand than others. In some instances, a month or even a few weeks can present the opportunity to make an enormous sum of money. But your business will not be able to take advantage of seasonal business trends if it […]
As a new, emerging or growing business, it is important to have an open channel to the financing you need to operate. A critical aspect of your business operation is the management of cash flow — you need to have an adequate amount of funds to be able to keep your inventory purchases in balance with […]
There is an expression that goes, “people don’t plan to fail, they just fail to plan.” No entrepreneur going into business does so with a plan to fail, but inadequate access to working capital and other financing options is a huge contributor to a business’s lack of success and ultimate failure. Many factors go into […]
No business is too large or too small for additional financing when the need arises. Whatever the reason for needing working capital, it is important to have a partner who can provide you access to the capital you need when you need it. Here is some information about the importance of maintaining a good working […]
Running a small business is no small feat. There are a multitude of responsibilities to cover, as well as the need to remain focused on the future and ready to adapt to an ever-changing business climate. While large and well-established companies normally have significant volumes of cash on hand to address these needs, smaller […]
Owners of businesses that have been around for several years understand how important cash and cash flow are to their company’s health and viability. Strongly positive operational cash flow, or the cash flow the company generates from its business operations, means the company does not need to rely on financing or the sale of its […]
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