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What will happen if a business does not have enough working capital?
SunnyGlow2000
Working Capital is critical to your success. You can simply run out of money to do things - that's the importance of working capital. Take your current assets from your balance sheet and subtract your current liabilities...that equals working capital. Now lets say that the WC figure is 2000.00 and you are a 2M dollar business. You have $2k in unspoken for money that you can work with (do things). You business probably spends more than 2K per day on G&A expenses.
Do the math and if the Working Capital figure is low...you have probably felt the cash crunch.....now it will be obvious.
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