Buy prudentlyIf you are considering a new business enterprise, one thing is probably true. You are probably undercapitalized. That issue means you have to be creative in how you equip yourself for business while still leaving enough for working capital.
I have numerous stories of people who created sizable businesses with just a few dollars and the willingness to launch their business dream. The common thread to all those stories is how those people were able to draw on family, friends or themselves to set up what they needed to open their doors for customers.
If you are older when you start then you will probably repurpose what you have in the home to place in your new office or store front. It is also a high likelihood you will visit second hand stores and other places which resell used items in order for you to make your enterprise appear complete.
Every business owner (including myself) is tempted to buy the newest piece of furniture, electronic device or tool for their company. The owners who have been operating for awhile will resist that impulse buy because they know their dollars spent must be used to generate a multiple factor of return to the dollar spent. A simple concept that is overlooked many, many times.
Prudent purchases should be made in order to help you secure increased sales or decreased operating costs.
I am a CPA in San Antonio and serve individuals and small businesses in San Antonio and surrounding areas.
Richard J. Garcia | 06/05/2010