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Thus, prior to opening a new venture, ensure that adequate cash or credit isavailable to cover cash flow shortages until the business stabilizes and attracts areliable customer base. This can be achieved by raising equity capital in advance ofopening the business, because in time of emergency, it may be difficult orimpossible to raise needed cash in a timely fashion. Also, depending oncreditworthiness and industry, your business may be able to open a revolving lineof credit or have access to credit cards to help manage cash flow.4. Describe what external factors should be taken into consideration when planningand preparing a budget. When creating a business budget, there are a lot of things that you need to takeinto consideration. A budget is constantly changing and being modified, becauseyour business is constantly growing, changing, and improving. However, there arealso external influences that you need to take into consideration when creating ormodifying your business budget. There are lots of different kinds of externalinfluences. Here is a list of some of the external influences that there are on abusiness budget:Political and legal external influences: There are a couple of different ways that politics and legal policies can affect yourbusiness. Perhaps one of the most common political and legal external factors is thecreation and modification of taxes. As a business, you really have no control overhow much money the government decides to tax you for certain things. And, as abusiness, you are expected to follow the laws when different changes and taxes areintroduced. You will need to take taxes and other legal changes into considerationwhen you are creating a business budget. In addition, you also should take otherpolitical factors into consideration, such as a change in government or a war. Warscan often affect the stock market and the spending of money in a country, and youwill 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 yourbusiness budget. For example, a change in lifestyle patterns or in behavior canaffect the way that people decide to spend their money. In addition, a change in thepopulation can also have an external affect on the business budget. Many thingscan affect the change in population in an area as well, such as the lowering or risingof the cost of living, etc.Technological external influences:There also could be technological external influences which could have an affect onyour 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.