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The Entrepreneur’s Checklist for Starting an Ecommerce Business

Over the past few years, the number of online shoppers has increased tremendously. Statistics curated by online selling tool, Selz, predicted that by 2018, the total number of online shoppers in the U.S. will climb to 215 million. As more and more consumers turn to their mobile phones and computers to do their shopping, entrepreneurs are setting their sights on the ecommerce industry. If your one of these individuals hoping to launch your business online, the following checklist will help you get started:

Select a Business Structure

The business structure you choose will have both legal and tax implications, so it’s important to choose wisely. Your options include: sole proprietorship, partnership, LLC and corporation. Keep in mind that there are different types of partnerships and corporations you will have to research in depth. If you fail to specifically choose an LLC or corporation structure, the IRS will automatically consider your business a sole proprietor. Which business structure you choose completely depends on your individual circumstances; your choice should be based on liability, taxation and recordkeeping.

Research Business Licenses and Permits

After you’ve chosen your business structure, you will need to spend time researching the appropriate business licenses and permits. The sales tax licenses and business permits you need will depend on your city, county and state. All off these licenses and permits will need to be approved before you launch your business operations.

Invest in Marketing Early On

On the other hand, you can begin marketing even if you’re not up and running yet. Start by setting up social media profiles and write content for your blog – lots of it. As they say, “content is king”. For those who are interested in your business and are looking for more information, you can place a “coming soon” page on your …

Fixed Capital Versus Working Capital: What You Need to Know

Capital is the first word in the book of corporate world because it is the capital which is of paramount importance when one talks about starting a company or managing a company. Fixed capital and working capital are two types of capital and a company requires both types of capitals for the smooth running of the business of the company because both have different objectives and requirement for the company. In order to understand both the terms better let’s look at some of the differences between fixed and working capital.

  • The first and foremost difference between the two is that while fixed capital is used for the acquisition of fixed asset like building, furniture, plant and machinery while working capital is used for the maintenance and up keeping of fixed asset.
  • Fixed capital investment is strategic in nature because assets like land, building, plant and machinery cannot be purchased at frequent intervals and once these decisions are taken than they are irreversible and that is the reason why such decisions are taken by top management while working capital investments decisions are routine in nature because this type of expenses are done frequently as fixed assets maintenance is required every now and then and that is the reason why such decisions are taken by middle or lower level management.
  • In case of fixed capital company can raise funds from various long term source of funds like equity shares, debenture, term loan, merchant account cash advance (from a merchant account provider like FAM) and so on whereas in case of working capital company can raise funds from bank overdraft, company own cash, creditors and so on.
  • Fixed capital is often used for production of other goods and services while working capital is often used for acquiring raw material for production, maintenance