Report question

Note: your identity will not be shared with the person who sent you this message.
This field is required

how can i estimate the amount of money and working capital to launch and maintain my business ?

Sign in to answer

5 answers

Hello Asma. To answer your question generally estimates are generated from your budgets thats where you can derive your future costs so it might be cash budget, production or capital budgets it depends.

Then working capital management is broad but to generic its all about meeting you day to day expenses without facing liquidity hiccups in your business so in this case we keep much focus on cash management, financing policy, credit terms as well as your cash cycle.

Finally the maintaining part of the business requires managerial skills on how to cordinate and oversee the business overally.

Generally i think i have answered you.

Report Billy Francis's answer

Note: your identity will not be shared with the person who sent you this message.
This field is required

Starting up capital depends on the particular business you do, no amount is too much no amount is too small, it all depends on the particular business you want to do, you can do me for more guide

Report Samuel's answer

Note: your identity will not be shared with the person who sent you this message.
This field is required

Hi Asma. After developing a formal business plan you have to estimate the specific financial amounts to support its key areas (marketing, operations, etc.). Do not forget to discuss with your accountant this important matter. These links should assist you to go in the right direction: https://www.sba.gov/business-guide/plan-your-business/calculate-your-startup-costs --- https://www.nerdwallet.com/article/small-business/how-to-calculate-startup-costs-for-small-business --- “There are no secrets to success. It is the result of preparation, hard work and learning from failure.” (Colin Powell).

Report Miguel 's answer

Note: your identity will not be shared with the person who sent you this message.
This field is required

I think you need to answer two basic questions in a very definitive way:

  1. What resources do you need to make scarves (such as fabric, sewing machine, thread, scissors, pins, etc.)?
  2. How do you plan to sell and market the scarves (such as Instagram Ads, Shopify website, Google Pay per Click Campaign, Pop Up Stand, Flyers, etc.)?

Once you answer these two questions in quantifiable terms, then you have a basis for calculating your startup expenses. For example, how much fabric does it take to make one (1) scarf? You most likely need a few scarves covering several different patterns to have a good starting stock of inventory to sell.

EXAMPE 1: It takes 4 square feet of fabric to make 1 scarf. A supplier will sell you fabric for $ 1.50 per square foot and you want to have at least 12 different patterns (4 scarves for each pattern). Your estimated startup expense for fabric is: $ 288 (4 sq ft x $ 1.50 x 4 per each pattern x 12 different patterns).

Likewise, do the same on the marketing side – Question 2. EXAMPLE 2: I plan to run Instagram click ads for 20 days at a set budget of $ .75 per day followed by Instagram impression ads for 10 days at a set budget of $ 5.00 per day. Your estimated expense for Instagram Advertising is: $ 65 (20 x $ .75) + (10 x $ 5.00).

Keep it simple and focus on two basic things: Make It and Sell It. This is essentially what most startup businesses must do when they make a product. Quantify the making and selling of the products to arrive at a good cost estimate. Obviously, you should account for any organizational startup expenses such as registration fees, permits, licenses or anything required for legal compliance. And you will have to take into account how much of your personal money you can afford to invest in the business. Most startups have a constraint when it comes to funding.

Once you start to make money, try and invest against your weak points – things that are holding the business back. For example, you may not have the money for a Shopify Website when you start, but this is preventing the business from selling globally. For now, focus on making and selling your product after meeting all legal requirements. Good luck.

Report Matt's answer

Note: your identity will not be shared with the person who sent you this message.
This field is required

Through a good business plan

Report Alola's answer

Note: your identity will not be shared with the person who sent you this message.
This field is required