Working Capital for Start-Ups & Franchises

Before you can begin to sell, you need to create. In order to create, you'll need funds. If you're starting out and are a business that needs to stock inventory, you will need working capital to make those initial purchases. In the same vein, if your business requires equipment of any kind you will need to invest in leases or purchases for that equipment.

Whether you're just starting to get your name out there or deciding to ramp up your strategy, you'll likely need to set aside a decent budget for marketing endeavors. Marketing is an investment in your business, and to make that investment, you'll need to use working capital to achieve your desired marketing outcome.  

In order to start or grow a business, an investment in the people who keep your business running is a monetary necessity. Payroll is a primary need for ample working capital. 

Payroll and income taxes are immediate responsibilities that require regular payment quarterly by a business. Having working capital on hand in order to meet these payments will ensure that your business remains compliant and does not owe on the taxes due. 

As an owner, oftentimes you have to expect the unexpected and prepare. Having sufficient working capital to allow for wiggle room during unforeseen events is important.