FORUM WORKSHOP
Forum Workshop
8
4
•
CAPITAL
DETERMINING YOUR
START-UP CAPITAL
The “experts” will tell you that the reason the
A United States is in a major recession is debt. When you start your business, you may not be
U
allowed to play the credit game as would busiG
nesses that have histories. They can purchase
U
S
supplies, then pay the suppliers in fifteen to
T
thirty days. This enables the owner to collect
2 We import more than we export; we spend money from customers – cash from direct sales
0 more than we earn. The same principle applies and “receivables” from credit customers – and
1 to your personal finances and your business.
use that income to pay
4
When you overextend yourself by committing
the bills (“payables”)
to make payments on more goods and services
rather than using “startthan you can afford, youʼre likely to go broke.
up capital” (the money
Still, credit has enabled the developed nations
invested in the business
to enjoy a wealth of goods and services. Credit
to get it started).
allows a small business to grow into a big business, if it is not abused.
continued..
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