Business Tip Tuesdays: Oct 30 2018
Business Tuesday 💸💵
We all love to see fast returns 🤑on our investments, right?! For most people profit making is the key motivation to starting a business.
But believe it or not, profit doesn’t happen instantly. When starting a business, you need to ensure that you have enough money saved to sustain yourself in the lag time ⏰between what you put into your business and what you’ll get out. Net working capital is the amount of money a company has available to pay its short term expenses. You want to ensure that you have enough net working capital (money saved) 🏦to fully cover your business expense as they come due in the next 12 months.
For example, if your expenses will be $1000 a month, it is recommended you have $12,000💰saved up when starting your business. Good net working capital is a sign of financial strength and makes your business more appealing to potential investors.