Want this question answered?
answer
Someone can start a business with as little as 500 dollars or as much as 10,000 dollars. The capital always depends on the nature of the business. A catering or handicraft business may need less capital than advanced production businesses.
It depends on what kind of business you want to start. Online businesses can be less expensive, tens or hundreds of dollars. If you want to start a brick and mortar, your capital we have to be much higher. Plus you need to count in any registrations or necessary licensing.
They are labour intensive Mostly depend on local resources and their product is local community based They require less capital to start and operate They are not influenced by government rule as large businesses
It is possible to start a small business on a lease with less start up cost. http://www.businessfinance.com/small-business-lease.htm is a website that explains the process and gives the best information.
MATS LARSSON has written: 'LIMITS OF BUSINESS DEVELOPMENT AND ECONOMIC GROWTH: WHY BUSINESS WILL NEED TO INVEST LESS IN THE FUTURE'
More secured communication for everyone. I could say there will less business calls over the phone in the future. More user friendly communication devices will be available for email.
The future value of money is important in a business decision because you don't want to get less than the future value. You also want to make sure you make money if you will not have access to your money.
Less liquidity indicates the business has solid capital investments that are not easily converted to cash. These investments can be buildings, land, or equipment that typically take time to sell.
The main two factors to be consider are the capital or labor. which may easily available and less expensive will have to be chosen.
Current assets minus current liabilities is called working capital and working capital is that free cash amount which is available for running day to day business functions.
Requirements Of working capital depend upon various factors such as nature of business, size of business, the flow of business activities. However, small organization relatively needs lesser working capital than the big business organization. Following are the factors which affect the working capital of a firm:1. Size Of BusinessWorking capital requirement of a firm is directly influenced by the size of its business operation. Big business organizations require more working capital than the small business organization. Therefore, the size of organization is one of the major determinants of working capital.2. Nature Of BusinessWorking capital requirement depends upon the nature of business carried by the firm. Normally, manufacturing industries and trading organizations need more working capital than in the service business organizations. A service sector does not require any amount of stock of goods. In service enterprises, there are less credit transactions. But in the manufacturing or trading firm, credit sales and advance related transactions are in large amount. So, they need more working capital.3. Storage Time Or Processing PeriodTime needed for keeping the stock in store is called storage period. The amount of working capital is influenced by the storage period. If storage period is high, a firm should keep more quantity of goods in store and hence requires more working capital. Similarly, if the processing time is more, then more stock of goods must be held in store as work-in-progress.4. Credit PeriodCredit period allowed to customers is also one of the major factors which influence the requirement of working capital. Longer credit period requires more investment in debtors and hence more working capital is needed.But, the firm which allows less credit period to customers needs less working capital.5. Seasonal RequirementIn certain business, raw material is not available throughout the year. Such business organizations have to buy raw material in bulk during the season to ensure an uninterrupted flow and process them during the entire year. Thus, a huge amount is blocked in the form of raw material inventories which gives rise to more working capital requirements.6. Potential Growth Or Expansion Of BusinessIf the business is to be extended in future, more working capital is required. More amount of working capital is required to meet the expansion need of business.7. Changes In Price LevelChange in price level also affects the working capital requirements. Generally, the rise in price will require the firm to maintain large amount of working capital as more funds will be required to maintain the sale level of current assets.8. Dividend PolicyThe dividend policy of the firm is an important determinant of working capital. The need for working capital can be met with the retained earning. If a firm retains more profit and distributes lower amount of dividend, it needs less working capital.9. Access To Money MarketIf a firm has good access to capital market, it can raise loan from bank and financial institutions. It results in minimization of need of working capital.10. Working Capital CycleWhen the working capital cycle of a firm is long, it will require larger amount of working capital. But, if working capital cycle is short, it will need less working capital.11. Operating EfficiencyThe operating efficiency of a firm also affects the firm's need of working capital. The operating efficiency of the firm results in optimum utilization of assets. The optimum utilization of assets in turn results in more fund release for working capital.