Capital is often a constraint or even smoothness when it comes to starting a business. So whatever type of business you will need capital even if it is small, even to become a dropshipper or reseller and other online jobs that are said to be free, you will still need capital at least to buy a laptop or smartphone device and an internet connection.
So before starting a business, you need to know how much money you need or initial capital, and then you need to know where the source of that initial capital is. What is Initial Capital? Although many economists give different definitions of capital but basically it is the same, and if we conclude, then we can define capital as the amount of money we need to start a business. Next we also need to know the groups or types of capital according to their use, which we can divide into 3 types of capital, namely:
1. Working capital, often also interpreted as the difference between current assets and current liabilities. So in essence working capital is working capital is the amount of money that we provide for inventory. both finished goods and raw materials.
2. Investment Capital, is the amount of money spent to buy tangible and intangible fixed assets that have a large value, and are long-term such as buildings, machines, copyrights or patents.
. Operational capital is the amount of money that you have prepared to finance daily business operations (which can be calculated monthly) such as transportation costs, goods transportation, electricity, water, employee salaries, etc. So operating capital is a fixed cost that you have to spend even if your merchandise is sold or not.
So before starting a business, you need to know how much money you need or initial capital, and then you need to know where the source of that initial capital is. What is Initial Capital? Although many economists give different definitions of capital but basically it is the same, and if we conclude, then we can define capital as the amount of money we need to start a business. Next we also need to know the groups or types of capital according to their use, which we can divide into 3 types of capital, namely:
1. Working capital, often also interpreted as the difference between current assets and current liabilities. So in essence working capital is working capital is the amount of money that we provide for inventory. both finished goods and raw materials.
2. Investment Capital, is the amount of money spent to buy tangible and intangible fixed assets that have a large value, and are long-term such as buildings, machines, copyrights or patents.
. Operational capital is the amount of money that you have prepared to finance daily business operations (which can be calculated monthly) such as transportation costs, goods transportation, electricity, water, employee salaries, etc. So operating capital is a fixed cost that you have to spend even if your merchandise is sold or not.
