Capital assets are cash in bank, accounts receivables, loans, check credits and other financial instruments that you use to grow your business. Growth eats a lot of cash, so you should focus on building your cash reserves already at start, hence our focus on sales already out of the gate.
Your Capital Assets
When developing capital assets, think about the following
- When increasing capital in your business, focus on selling more at a price point that is profitable. You need to have this cash to fund your growth.
- One of the simplest methods to increasing capital is to increase your prices. The other key strategies are to increase volumes and frequency of purchases.
- Small business loans are a great way to fund your business, and you should not wait until you’re making money to get a loan. In fact, having great relationships with your bank and showing that you can pay off your loan increases the probability for them to grant a bigger loan should you need it. If your business is validated, and you are serious about it, investing in it is mandatory and the best choice you can make to get it off the ground faster.