How To Estimate The Capital Needed For Starting A Business?

The problem is determined by the type of enterprise, the size of the company, the place of operation, the competitors and so on.

One thing is certain: before we recover the investment, we must invest a lot of money first. Even the most profitable enterprises will have to wait a few months to make profits. Many enterprises may need more time.

The funds needed to establish enterprises are mainly composed of the following parts.

(1) equipment: including the purchase cost of production equipment, office equipment, tools and similar items.

Architecture: 2: building, decoration, carpentry and electrician to fix the cost of fixtures.

(3) advance payment: including rent, business license and other similar prepaid expenses.

(4) business turnover: at least three or four months of operating capital, including wages, advertising fees, maintenance fees, repayment of debts, purchase of materials and energy costs, etc.

(5) inventory: capital occupied by semi-finished products, finished products, raw materials and so on.

According to the above parts, it is estimated that the capital needed for the enterprise is estimated in advance.