Having enough capital for business success

Corzhens Level 1

December 8, 2018, 5:56 am

53

Write the reason you're deleting this FAQ

Having enough capital for business success

I want to share my experience in my retail business before the age of the internet. My plan seemed complete and my capital looked enough. But after a few months of good sales, I was deluged with new customers that may be the result of word of mouth. I had to borrow money for the supplies that were purchased. Sooner than I expected, the interest of the money borrowed was eating the profits. If only I had more than enough capital my business would still be alive today. The lesson learned is the amount of capital that you will use for your business should be more than enough.

Comments

Please login or sign up to leave a comment

Join

Youngshark

Youngshark

I think that in the initial stages it is all about making mistakes and the more money you have the more you will splash during those mistakes but when broke you can work with what you have and be economical.

6 years ago

Are you sure you want to delete this post?

overcast

overcast

I have to agree here. When you are broke, you where not to spend the money. And that's one reason having capital in the right sides help a lot. so you have to understand that business success requires us to understand the investment wisely. And there comes the point where you can see that business should make mistakes through frugal approach.

6 years ago

Are you sure you want to delete this post?

Enyi

Enyi

Your ideaolgy is great,I wouldn't advised anyone to spend so much on a very tender business.it better to make all the mistakes with small amount than making it with huge amount.

6 years ago

Are you sure you want to delete this post?

Youngshark

Youngshark

If you blow a little money but get to learn a very valuable lesson then you have gained ed so much at a lower cost which is best to start with what you have.

6 years ago

Are you sure you want to delete this post?

overcast

overcast

Yes when one does not have the money. It helps to do the hustling. And then from there onwards just focus on the customers. Most likely that works out for people. If they hustle and get new customers that does work out.

6 years ago

Are you sure you want to delete this post?

M1ndPrototype

M1ndPrototype

any business needs investments
so don't exaggerate

4 years ago

Are you sure you want to delete this post?

henrywilson

henrywilson

yes, it all comes down to mistakes

but conclusions need to be drawn

4 years ago

Are you sure you want to delete this post?

jpk0007

jpk0007

Well, i had started a a small business of my own in the past, but at that time the reason i had to close it was that i was unable to give enough time to it and i also was not able to get the skilled manpower required for the business which was growing fast.I think having enough investment is quiet necessary when you are starting any new business , particularly in the initial stages when you are trying to establish it.Nevertheless every failure and mistakes gives you an opportunity to learn and become succesful in the future.

6 years ago

Are you sure you want to delete this post?

Kakashi2020

Kakashi2020

Here's a tip if you're planning to open a business ask yourself how much are you willing to invest in it. Then whatever is your answer get it's 40 percent and use that as capital.for a business which can operate for 6 months with all expenses included. If your business succeeds in 6 months time then you can use the 20 percent remaining money for expansion.
But if after 6 months, the business is a flop then use the other 40 percent to open up another business.

6 years ago

Are you sure you want to delete this post?

iambeth

iambeth

Thank you for this good tip. Six months is the time when you can really gauge whether you can continue the business or not.

6 years ago

Are you sure you want to delete this post?

esteban123

esteban123

I think that it is really an advantage most of the time if we have enough capital to be used for our business because there will come a time that our business might expand or experience some loss at a certain point and we really need more funds to recover those loses right away by investing more to our business..

6 years ago

Are you sure you want to delete this post?

Kakashi2020

Kakashi2020

I do agree because most businesses does not earn right away. In such cases the business should always stay open and that means extra expenses.

6 years ago

Are you sure you want to delete this post?

Enyi

Enyi

Well,this totally depends on the individual involved. Have you been able to learn from the mistakes before trying out again. If one isn't restrategizing then putting in more money might mean more loss.

6 years ago

Are you sure you want to delete this post?

burgosmichael24

burgosmichael24

Having enough capital is very vital for the business. It is true that sometimes interest in debts takes most of your income. When starting a business it is very important to have a concrete marketing plan with ROI or Return Of Investment.

6 years ago

Are you sure you want to delete this post?

Kakashi2020

Kakashi2020

I would have to agree that a business should have ample capital for 6 months operational expense. The smaller your capital, the riskier.

6 years ago

Are you sure you want to delete this post?

overcast

overcast

If your offline business is about to start you have lot of things to spend on. Like say spending on people. Buying things required for the business. And the thing is that having enough capital can improve your business lot quickly. You have to understand that business success is not going to be easy whether you add money or not. It all depends on your approach in such case. I have learned from my experience that having capital and using it wisely is what makes business work quicker.

6 years ago

Are you sure you want to delete this post?

Enyi

Enyi

That's right it never about adding or just maintaining the funds one has. If it isn't about being outstanding and successful it better one doesn't add more money. I have always believed in more planning than funds.

6 years ago

Are you sure you want to delete this post?

overcast

overcast

Yes. Having funds does not make business reach success. There are some business that make money based on how customers and the sales people work. In such case having more money for that business as funds hardly helps if the product is properly managed. If not then I guess there are issues in chains.

6 years ago

Are you sure you want to delete this post?

luv2xacosta

luv2xacosta

I agree. Business will flourish when you know how to handle it. Not all those who put up business is successful its because of mishandling the money that is intended for your business.

6 years ago

Are you sure you want to delete this post?

overcast

overcast

Yes. I think the process goes in every business. And one has to work around with the business success. Because cashflow is what many people don't pay attention to. And that means they have to work around different set of issues and skills. And they have to get things right in the due process.

6 years ago

Are you sure you want to delete this post?

Kakashi2020

Kakashi2020

You could have managed by just staying small until the time you've save enough to expand. Although, I also believe in the saying "Strike while the Iron is hot" and "Opportunity knocks once". But if I don't have the capital to expand then I'll just grow my business slowly.

6 years ago

Are you sure you want to delete this post?

vhinz

vhinz

My first business venture was also a failure. But in my case, it was not the capital that I'm lacking, rather it was the lack of knowledge and skills about the business that I've got into. The lesson I learned from that failure is that you have to understand the market, the product, and the operational expenses to see the business could really gain profits.

6 years ago

Are you sure you want to delete this post?

overcast

overcast

I think if business can get the customer. Then they have business is how I think of things. If there are not customers then there seems to be no business. Because customers are what makes the business move. So cashflow understanding is what we need. If there is not managed cashflow. Then there would be issues in the chain of supply to delivery towards the customers. And then business fails.

6 years ago

Are you sure you want to delete this post?

Alania

Alania

That's a very interesting story which I can relate to. I too used to do investments, but my mistake was the lack of certain budget. Only now I understand that I should have been better prepared, with a greater budget dedicated for business purposes. Invest only what you can afford to lose!

6 years ago

Are you sure you want to delete this post?

Martinsx1

Martinsx1

Seriously, if you fail to plan before getting into any business investment, you have already planned to fail.

This is the law of any business dealing. Planning is very important for any business survival because without it, no business will do well.

6 years ago

Are you sure you want to delete this post?

Enyi

Enyi

In as much as we might need more funds for our business I believe we should first plan and have a good grab of what we really what to do to really succeed. It might not be easy initially but with continuity we can make the best of it.

6 years ago

Are you sure you want to delete this post?

Barida

Barida

Yeah, having a good plan of what we aim to achieve is something that is important. We should always look at ways that we can ensure that we work it out for the business that we plan to do as well.

6 years ago

Are you sure you want to delete this post?

amelia88

amelia88

An understanding of finances and how much capital you’re going to need is hugely important when starting a business, otherwise you stand to lose it all. I’d always recommend taking some time to understand a business from the financial sense or enlist the help of a professional who can guide you.

6 years ago

Are you sure you want to delete this post?

Barida

Barida

Things have gotten better in this age that we are now. I think that we are in that period where you get to even have access to a lot of grants and loans that have soft interest rate. However, I learnt something from this on the need not to borrow much from outside when doing a business.

6 years ago

Are you sure you want to delete this post?

Martinsx1

Martinsx1

Exactly! When you run your business on debts, it's not going to do so much well because you are going to be running the business under pressure.

The thought of having debts to pay off even when the business is not doing well makes you lose focus to run the business well.

6 years ago

Are you sure you want to delete this post?

overcast

overcast

Yes in past getting loans, getting people to accept us and getting product to sell was not easy. And that made many people quit on things. So it's better to play around with the business idea for start. And then launch the business when the time is right. But it depends on surrounding how acceptable the customer for the ideas.

6 years ago

Are you sure you want to delete this post?

Martinsx1

Martinsx1

It's very important to keep a decent amount of money as your business capital when starting a new business. It would help you to grow your business and survive your business challenges.

Running a business on credit isn't a good idea at all, when you fail to pay off your debts, you can't get new supply and it's the end of the business.

6 years ago

Are you sure you want to delete this post?

rose61

rose61

Business capital should be more than enough.In fact,for the first six months, the owner should not take any money from the business for personal expenditure. All profits made at this stage should be ploughed back into the business.This will boost stock and also top up the capital of the business.

6 years ago

Are you sure you want to delete this post?

Alania

Alania

Having enough wealth accumulated prior to starting that business is very important. Obviously, a business planned succesfully will bring profits, but it can also fail. It must be managed properly ahead. You can't just go out of the blue and start wasting mone on something not calculated.

6 years ago

Are you sure you want to delete this post?

Jeane

Jeane

When you are seeking a loan to expand your business you also need to take into account the profits you expect to make which should be more than enough to repay the loan (+ interest of course). Otherwise, I would rather not risk trying to expand the business and risk losing everything in case I am unable to repay the loan.

The best thing to do when you are getting too many customers is to refer some of them elsewhere. These other business will repay that favor later maybe so you'll be building solid business relationships that could prove profitable.

6 years ago

Are you sure you want to delete this post?

esteban123

esteban123

I think that having enough capital for a business is a must because it is a major requirement if we want to succeed in business. A certain business cannot meet its objective if it is experiencing some financial problems at the first stages of its operating period. That is why it is not advisable to start a business if we cannot really finance it well since it will be just a waste of time if we will do it.

6 years ago

Are you sure you want to delete this post?

jaymish

jaymish

Nice lesson to learn. It also reflects the problems entrepreneurs are going through today. Lack of capital is a real thing. Also most financial institutes that lend do so at extortionate rates that why moSt entrepreneurs prefer to borrow money or to invite venture capitalists who take up shares and share in the profits. This story is sad because you had the market.Next time try other solutions for capital like crowd funding.

6 years ago

Are you sure you want to delete this post?

Franzel2oo

Franzel2oo

I've been thinking of starting a business some time in the future and I must admit, this particular aspect did not cross my mind. I can see how practical it is to have a rainy day fund set aside as part of your capital. It will be nice to not have to take loans to support a growing business and then lose all profits you make paying up that loan. It must have not have been easy for you to share. Thanks a million.

6 years ago

Are you sure you want to delete this post?

henrywilson

henrywilson

Having enough wealth accumulated prior to starting that business is very important

4 years ago

Are you sure you want to delete this post?

henrywilson

henrywilson

The availability of capital is very important and it is this factor that determines your further success in business. Personally, I think that opening a business using credit money is wrong, but I just had no other choice and I could not wait any longer. We have been developing this plan for more than six months and during this time I was missing only 2k bucks. I thought for a long time and finally decided to take payday loans in Texas. It was a very risky idea, but I was confident in this company and in my business plan and had no problems with payments.

4 years ago

Are you sure you want to delete this post?

Zoerida

Zoerida

I know how it feels tohave such problems at the beginning, because I also faced them. The plan of the
business almost always seems to be good enough, but then the problems come from
where you don’t expect them to. I tried one more time but I bought a business with
the help of these documents for buying a business. They are also good for
selling one. There is everything you need to know about business in general. How
to sell, how to buy, how to develop I, templates, contracts and more.

4 years ago

Are you sure you want to delete this post?

Lukash

Lukash

you have to have reliable business partners that can always help you

4 years ago

Are you sure you want to delete this post?

M1ndPrototype

M1ndPrototype

You also need to know that thing is important and if it will be relevant in the long run

4 years ago

Are you sure you want to delete this post?

lakersgirl

lakersgirl

There are a lot of things that play a role in success when it comes to business. I for example have a friend who is into construction and he is smart enough to know that this is going to be a good thing in the long run. He also makes sure to partner with the best in the business. So when I asked for advice he suggested the best.I have been planning on doing some renovations and I wanted a deck for a while now but kind of never understood 100% how to achieve the crazy ideas that are in my head all the time. I recently bought a plot of land in the mountains and I am building up some property there and it is a big change for me. I grew up in big cities and I have worked with construction companies and real estate developers but it was usually for skyscrapers and not for small homes. My main objective was to help organize things like finding contractors and setting appointment with Pete Suen and his scaffolding business and other things like that. So I do have some knowledge about what it is and how it is suppose to work but not no this scale.
One of the reasons why I hired everyone I guess is to do it for me. I have a meeting with a architect later this week. Hopefully he will understand what I mean this time hahah

4 years ago

Are you sure you want to delete this post?

Pokeguru

Pokeguru

You have a very excellent idea! This is how I opened my own merch store from various bloggers. It was my old dream, and thanks to https://factorforyou.com/texas-factoring-companies/, it came true. I needed an office to store the goods because I didn't want to keep everything at the house. Moreover, I'm sure that people would like to see things live before buying online. I'm delighted that many bloggers have agreed to cooperate with me, and this dream has come true. I hope to continue to develop my business and move further than just a tiny store.

4 years ago

Are you sure you want to delete this post?

milaniagreen

milaniagreen

Capital alone is not enough for success in business. Imagine that you get an answer to your question almost immediately by going to some site. And if this answer is visible on the first page of the search engine, then this is already a guarantee of your trust as a potential client of the company. Therefore, such website promotion allows not only to make brand awareness even greater, integral element of SEO in Singapore, but also to increase consumer loyalty.

3 years ago

Are you sure you want to delete this post?

BrownBee

BrownBee

I LOVE THIS!! You should try it. friday night funkin

3 years ago

Are you sure you want to delete this post?

chrisbarett

chrisbarett

You can increase your capital by investing in real estate. For example, buy one apartment and then resell it promptly. I can say from my own experience that this is a very effective method. When I needed it, my friends advised me https://onstage-online.com/contact-san-francisco, who did a consultation for me. You need a specialist who has the right knowledge and experience to quickly and efficiently select the right objects. This increases the speed of finding the right property, as unsuitable objects are quickly screened out of the total mass of the huge number of proposals.

3 years ago

Are you sure you want to delete this post?

Edgaaar

Edgaaar

I believe that anyone who starts a business should pay attention to its development in social networks. It is impossible to do without it today if you really want to succeed. Contact the experts from Office Technology and they will tell you where to start. Do not ignore these opportunities and the number of your mistakes in doing business will be much less.

3 years ago

Are you sure you want to delete this post?