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What is Equity

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Most businesses are created because an entrepreneur has a passion for something.  Sometimes these entrepreneurs forget about the purpose of a business.  The main purpose of forming a business is to make a profit.  Not only is equity important in personal finance, it is one of the most important concepts of Business.


What is Equity
Business equity is your capital or net worth.  It is the value of your business after all of your debts are paid.  The more equity you have, the better chance you have of acquiring an investor for your business.   Positive Equity comes in the form of cash, property, and assets.  Negative comes in the form of debt.  


Growing Equity
As you increase sales, your business equity should increase.    As you equity increases, your business debt should decrease making your business a more viable business.

What advice fo you have for managing and growing Business Equity?

 

Read 2962 times Last modified on Sunday, 11 September 2016 23:45

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