Working capital is the part of money you are using to run or operate your business. First, for the layman, the money you are using to buy things at its cost.
You add it to your profit. Then, in the end of each sale maybe one week, month before you go back to the market or the producer to buy your goods; products; services.
To control your the money or capital you are using to do your business effectively you must have a habit each time you make profit; gain separate it with the one at hand.
Meaning, you are take out your business to be saved bank. Second, for a firm; an industry, the capital you engaged in running the all cost.
It is the working capital that makes your productions, distributions, advertisement and marketing possible.
You must make sure you separate the fixed assets from your gains; profits margin.
An expert, my daddy, Mr. Samuel Ojiefoh Imafidon says, that your working capital is a seed for replanting. When you consider it as such you will not spend it.
Some companies’ managers spend both running cost and fixed assets, in the end the companies fold up. Some individuals spend both the working capital and gains, in the end they run into loss and fold up.
Your business is like the farm, farmers do not eat their seedlings and they preserve it for the next season of planting.
Likewise, eat you working money; capital when the business; company needs money; cash to grow, it lack it- When we are in bad economy you hardily run your business.
3 WAYS TO MAKE YOUR BUSINESS CAPITAL INCREASE FROM 39% TO 101% PROFIT MARGIN
- Buy some seasonal products for examples, palm oil, melon, live snail, pepper, other are some drinks and keep them in a whole house, snail’s farm or shop, resale it when the product are not available in the market or in the society.
- The law of demand and supply would be obeyed; the higher of supply of goods; products; services the price tend to decrease, the lower the supply of goods; products; services the market price tend to increase.
- Invest in Bit coin, learn the tricks and know its trend either high or lower, know how to click get a good returns; profit margin. Note: There is more a 200 Bit coin online or offline market.
- You could buy and let grow for a minute; week; month; year; as the case be. Provided know you what are doing at that time.
- Buy property; land in a developing, secure, high ground with good motor able road areas closed to major / popular market, university location, general hospital, big company, church etc.