Definition: Cash that’s available to invest in operations, especially cash that came from owners.

Example: Some people use the term “capital” to refer to cash from any source (e.g. borrowings, owner’s investment in the company, cash from operations). Others use the term “capital” to mean only cash the company received from owners.

Why It’s Important: Capital is one of the required ingredients for business success. Capital is the funding needed to start the company, and for ongoing operations and investment.Many great ideas are never achieved due to insufficient capital. Plans for acquiring and maintaining capital are crucial to the success of a business.

Get the FREE Conquering Cash Flow Guide

Do you want more cash flow to capture opportunities and achieve your goals?

Are you stressed out about your business cash flow?

This guide will help you:

  • Get your hands around your current and projected cash flows
  • Increase cash flow and reduce dips in cash flow
  • Identify critical sources of cash for your business

Click here to get the FREE guide!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.