I have always contended that money doesn't necessarily motivate, but its absence surely aggravates. Naturally, it takes money to make money and nothing is more aggravating for a small businessperson than not having adequate capital to get a business going or to expand the business. Whether you are just starting out or expanding your business, first determine how much money you will need for your venture. Your feasibility analysis should take in to consideration cash requirement from before you start through opening day and until profitability is attained. Fixed capital is needed to purchase the firm's permanent fixed assets, such as land, buildings, computers, and equipment.
Accountants calculate working capital as current assets minus liabilities.
Operationally, you need it to cover inventory, pay bills, wages, and the unexpected. Growth capital, unlike working capital, is not used for the short term, but rather is focused on expansion needs such as hiring additional workers or equipment. Equity capital represents the personal investment of the owner or owners. This is sometimes called risk capital, because these investors assume the risk of success or failure. Debt capital is the financing that results from borrowing money that must be repaid with interest.