Business Startup Capital and Cash Flow Infographic

September 26, 2012 Columns

By Norman Kaui

If you're starting a business you need to pay close attention to your startup capital and cash flow.  The money needed to operate your business.  i.e. rent, inventory, marketing, b2b services, etc.

Plan ahead and raise as much capital as possible prior to launch.

Once your business has started you won't have time to focus on raising cash.  The general rule of thumb is having approx 2-3 years of operating expense.  For many startup's these days this is often not the case, but just keep in mind to raise as much cash as possible prior to the launch of your business venture.

You can raise startup capital via crowd funding sources, investors, banks, equity, friends and family, personal savings, and credit cards.

Cash Flow and Insufficient Startup Capital are amongst the highest factors of successful and unsuccessful startup's.

Take a close look at the overall risk and return on investment before you go out to raise money.   In the end nothing is guaranteed in life but do your very best to minimize your risk.

Here's a general cash flow infographic of a business startup.


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