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Friday, January 27, 2017

Estimating Working Capital Requirement

Now that you know why working capital is critically important to keep an organization running, the next step is to estimate how much you need. Hypothetically speaking, if all transactions were in cash and done with no time lag, the working capital requirement would be zero. 

To illustrate this point, let’s suppose a company buys goods for $100 from A and at the same instant sells the entire stock to B for $250. It makes a gain of $150 without holding any stock or even, needing cash because there is no time lag between the two transactions. Therefore, its working capital requirement is zero.

Tuesday, January 17, 2017

7 Times You Should Start A Business

[Firstly, warmest new year wishes to all our customers, readers, and the extended Eurion family]

In my experience as a business consultant, the single most important attribute of an entrepreneur is the aptitude - natural or developed. Aptitude is the biggest facilitator of success and everything else follows. As Guy Kawasaki puts it, "Entrepreneurship is not for everyone." But once you have that covered, the second most critical factor is the timing.