Do You Have Sufficient Capital?
To run a successful business, you need to have a supply of capital. This could be your own money, money lent to you by family and friends, or money you’ve negotiated to borrow from a bank. Banks are reluctant to lend to a start-up business, unless the business operators have some ‘hurt money’ in the deal. For starting a business or expanding a business, business operators need to prepare a well-thought out budget and cashflow forecasts, to determine whether they have contributed or borrowed sufficient capital, to ensure the future viability of the business.