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Initial Capital Investment

Initial Capital Investment

Before investing any amount of capital into a business, organisation or idea, It is crucial that research is conducted into the market and the market share of the business. From this, an estimation can be gained if it is a wise idea and what the possible return maybe.

The initial capital investment must be sufficient to cover all costs of the setting up, opening and running of the business until the business is making enough income from sales and services to aide or cover all costs of running of the business.

The first main expenditure the business will occur is Capital expenditure; this includes purchase of land and buildings to be used for the business over several years, and purchases of fixtures and fittings, computers, software and equipment that will be beneficial to the business over periods in excess of one year.

It is important that Mr Myne, appreciates that the points of this type of expenditure is to generate extra profit for......


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Approximate Word Count: 1692
Approximate Pages: 7 (250 words per double-spaced page)

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