How to Determine the amount of Initial Capital?

Suba · Jul 8, 2023

When we are going to run a business, of course we need to know how much capital is needed, to be able to find out the initial capital needed you must be able to detail each part of the initial capital which consists of working capital, investment capital and operational capital.

In the next stage, you have to detail each item needed along with the price for each type of capital, such as working capital in a trading business, which is merchandise, while in the production business, it is in the form of raw materials and auxiliary or supporting materials. Meanwhile, investment capital is in the form of equipment such as storefronts, production machines, etc. While operational capital is in the form of shop building rent, electricity, water, employee salaries, marketing costs, internet costs, etc.

Heatman · Jul 8, 2023

Being able to determine the initial capital of your business is going to be dependent on the kind of business that you want to do because all manner of business have the amount of capital that is needed to start the business.

Niyi Briggs · Jul 8, 2023

You would need to have all the information about the business to determine the amount of capital you need. Make sure you know all the fixed costs needed. The running cost can be determined by start up capacity.

cherry123 · Jul 9, 2023

Starting a business needs you first knowing the capital you would need You detail each item needed along with the price for each then you add up all to know the capital needed

eldavis · Jul 9, 2023

This is exactly why research is needed, before starting a business, make sure you have found out all that you need and the current price for these things before hand.

cherry123 · Jul 9, 2023

Yes exactly why research is needed, before starting a business. I do tell people I know that they need to make sure they know they money needed to start a business before starting out

riberet19 · Jul 9, 2023

I think this depends largely on what type of business you are going to start, also the needs you have, the place where you are going to start them, whether it is online or offline is also important, you have to see many points to know how much initial money you need.

astutimeliana723 · Jul 9, 2023

Suba said:
When we are going to run a business, of course we need to know how much capital is needed, to be able to find out the initial capital needed you must be able to detail each part of the initial capital which consists of working capital, investment capital and operational capital.

In the next stage, you have to detail each item needed along with the price for each type of capital, such as working capital in a trading business, which is merchandise, while in the production business, it is in the form of raw materials and auxiliary or supporting materials. Meanwhile, investment capital is in the form of equipment such as storefronts, production machines, etc. While operational capital is in the form of shop building rent, electricity, water, employee salaries, marketing costs, internet costs, etc.

What you say is true, determining the initial capital needs to make a business planning proposal carefully. At least he knows how much money is estimated to be needed to start his business.

Suba · Jul 9, 2023

That is your first step before running any business, knowing the initial capital needed is very crucial. I hope it can be useful for anyone, especially new businessmen. of course you also have to research the market to determine the price of materials, equipment etc.

Springtime · Jul 9, 2023

That depends on the kind of business you start. You need to know the equipment and stocks you need to purchase, the rent you pay and other running costs such as hiring personnel.

Stardom22 · Jul 9, 2023

For me I think the amount of the initial capital required is determined by the type of the business and the sizes of the entire businesses to be initiated. Large scale business would require a large amount of capital compared to a smaller scale

Suba · Jul 9, 2023

That is why I only provide or discuss the general basis for determining the initial capital, so that it can be applied to any type of business, be it trading or production, on a large or small scale, there is no difference. You can try any type of business you want.

eldavis · Jul 10, 2023

Springtime said:
That depends on the kind of business you start. You need to know the equipment and stocks you need to purchase, the rent you pay and other running costs such as hiring personnel.

Yes the kind of business you are about going into and the scale of the business does determine how much you would have to spend, this is why it is extremely important you take time out to make some research about what you need for the business and the cost of these things.

Bisolami · Jul 13, 2023

Suba said:
When we are going to run a business, of course we need to know how much capital is needed, to be able to find out the initial capital needed you must be able to detail each part of the initial capital which consists of working capital, investment capital and operational capital.

In the next stage, you have to detail each item needed along with the price for each type of capital, such as working capital in a trading business, which is merchandise, while in the production business, it is in the form of raw materials and auxiliary or supporting materials. Meanwhile, investment capital is in the form of equipment such as storefronts, production machines, etc. While operational capital is in the form of shop building rent, electricity, water, employee salaries, marketing costs, internet costs, etc.

The best ways to determine that is by making a proper research. If you make your research, you will know how much money or how much it is likely for you to use.

Heatman · Jul 13, 2023

Niyi Briggs said:
You would need to have all the information about the business to determine the amount of capital you need. Make sure you know all the fixed costs needed. The running cost can be determined by start up capacity.

Having every detail about your business is always going to give you the information about the capital that is needed when you are planning on executing the business project.

Etini Willie · Jul 13, 2023

You need to have a session with an experienced person who has been in the business. And from there, you find out everything needed to establish the business and you get to the market and find out the prices of those things. With that, you would know the amount you need to start.

Suba · Jul 13, 2023

Bisolami said:
The best ways to determine that is by making a proper research. If you make your research, you will know how much money or how much it is likely for you to use.

You are right, as I have explained in the thread, of course we have to do research after we have determined it, such as working capital you have to do research on the price of goods, while for investment capital it means for the long term such as machine prices, other equipment, storefronts shop etc.

Authenticity101 · Jul 14, 2023

It is best to be really detailed when calculating how much capital you need in starting a business. You need to budget on every area of business without leaving any behind. Forgetting to budget on a business operation is what may cause the startup to fail.

eldavis · Jul 14, 2023

Abigael said:
It is best to be really detailed when calculating how much capital you need in starting a business. You need to budget on every area of business without leaving any behind. Forgetting to budget on a business operation is what may cause the startup to fail.

Yes this is why taking out physical research is very important. Take time out and go out to where you can buy these things and find out the current price. This would help you have a detailed price list to work with.

Blessed19 · Jul 14, 2023

When you are able I cut out your investment capital in your business then be sure to know that understanding your business profits would be very easy for you a lot.

How to Determine the amount of Initial Capital?

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