NATIONAL SMALL BUSINESS WEEK 4: Appropriate Working Capital for Small Businesses 2

If you do not put up enough money for Working Capital, you will be forced to incur debt or inordinately prolong accounts payable so that you get into trouble with your suppliers. Not having adequate Working Capital will place your business in an unsustainable cycle of debt.
After you have determined the amount you need for the fixed assets you have to acquire to be able to operate, you have to add to this amount what you need for Working Capital.
To determine Working Capital:
1 find out how much it takes to produce one unit of your product
2 …read more