Determine the type of venture capital | Business information center

Often we ask people who have opened a business: ?How much capital or loan capital that you need first when you open a business that now??. The answer often comes up is: ?? a few hundred dollars or several thousand dollars ?.? Right? Principally, there are numbers out. But, if you are asked like that, you can not necessarily answer. Because usually when we want to run a business, many of us who do not know how to calculate it.

This time I will share a secret with you about how to calculate the amount of capital or loan capital you need when you want to start a business.

1. INITIAL CAPITAL INVESTMENT
What the heck is the initial investment capital? This is the kind of capital that you need 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 goods used for the long term.

Typically, capital or capital loan is worth quite large as it is used for 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 have to spend to buy or make your merchandise. This working capital may be issued every month, or every comes order. In principle, with no working capital, you will not be able to complete your order or do not have the merchandise. Later, you might not even be able buyer because the goods are not there. That is the importance of working capital.

3. CAPITAL OPERATING
The last capital is operational capital. Operating capital is capital that you have to spend to pay the monthly operating costs of your business.

Budget in the capital or loan capital in each business operation is generally similar. This is because, in principle, is the operating capital is money that should you spend to pay for items beyond the cost of your business directly. So, Capital Operations are usually paid on a monthly basis.

Source: http://www.mazziottimedia.com/determine-type-venture-capital.html?utm_source=rss&utm_medium=rss&utm_campaign=determine-type-venture-capital

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