Thus prior to opening a new venture ensure that adequate cash or credit is

Thus prior to opening a new venture ensure that

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Thus, prior to opening a new venture, ensure that adequate cash or credit is available to cover cash flow shortages until the business stabilizes and attracts a reliable customer base. This can be achieved by raising equity capital in advance of opening the business, because in time of emergency, it may be difficult or impossible to raise needed cash in a timely fashion. Also, depending on creditworthiness and industry, your business may be able to open a revolving line of credit or have access to credit cards to help manage cash flow. 4. Describe what external factors should be taken into consideration when planning and preparing a budget. When creating a business budget, there are a lot of things that you need to take into consideration. A budget is constantly changing and being modified, because your business is constantly growing, changing, and improving. However, there are also external influences that you need to take into consideration when creating or modifying your business budget. There are lots of different kinds of external influences. Here is a list of some of the external influences that there are on a business budget: Political and legal external influences: There are a couple of different ways that politics and legal policies can affect your business. Perhaps one of the most common political and legal external factors is the creation and modification of taxes. As a business, you really have no control over how much money the government decides to tax you for certain things. And, as a business, you are expected to follow the laws when different changes and taxes are introduced. You will need to take taxes and other legal changes into consideration when you are creating a business budget. In addition, you also should take other political factors into consideration, such as a change in government or a war. Wars can often affect the stock market and the spending of money in a country, and you will want to consider this external influence as well when looking at your budget, particularly if your country is at war or on the brink of war. Social external influences: There are also many social factors that also can act as external influences on your business budget. For example, a change in lifestyle patterns or in behavior can affect the way that people decide to spend their money. In addition, a change in the population can also have an external affect on the business budget. Many things can affect the change in population in an area as well, such as the lowering or rising of the cost of living, etc. Technological external influences: There also could be technological external influences which could have an affect on your business budget. For example, breakthroughs in new technology could all-of- the-sudden put your business on the backburner of your particular type of business.
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