Question by  rrazorbakk (62)

What is the requirement for working capital when starting a new business?

I would like to open my own retail store and need assistance with how much working capital I need.


Answer by  malone (4817)

The only way to calculate working capital is by writing a detailed business plan, which will make sure you considered all aspects of the business and the costs. There are lots of different business plan templates and software programs that can walk you through the process.


Answer by  technogeek (6640)

That figure would depend on what you will need to purchase in order to be able to open the store. That includes stock, racks to shelve the stock, employees, advertising, training for the employees, signage for the store, some possible redecorating and other things. Add these figures together and add some extra to have a surplus for hard times.


Answer by  salsafoodie (3146)

You should have as much capital as you can as it will help you offset the loan that you can get when it comes to the bank. You should also get assistance through various state and city grants if your retail space was in a struggling city or you are selling a item that will do good.


Answer by  tamarawilhite (17883)

Ideally you need enough money to pay for any licensing fees and legal costs up front and 3-6 months of business expenses and your own salary.

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