Determining Your Business’ Capital Needs

Business capital refers to the funding your business needs to produce products or provide services. All businesses need capital, but it’s important to accurately determine the amount of working capital you need.

This video discusses the amount of capital needed to start and maintain a business. The most basic way to calculate the capital you’ll need is to determine the amount of money necessary to simply open your doors and begin functioning as a business. You’ll also want to calculate your daily working capital and other overhead expenses for at least six to twelve months. Once you have these estimates, you can begin pursuing your business financing options, such as a small business loan, a merchant cash advance, or even a crowdfunding project.