Chapter 4: Working with Business Capital
Tip I: “Capital isn’t scarce; vision is.” (Sam Walton, Businessman and Entrepreneur)
Tip II: “If you pay peanuts, you get monkeys” (Chinese Proverb)
Practically speaking, working capital is the cash required to run the daily, weekly and monthly operations of the business.
Working capital management is, therefore, the process of managing the liabilities and short-term assets so that te business has sufficient liquidity to run its operations smoothly.
Sources of Working Capital
1. Family and Friends
Be very careful when requesting for funds from people closest to you just in case your business tumbles to ashes.
The awesome thing about cash from friends as well as family members is that it comes with the lowest interest rates or none at all.