Adequate Capital and Credit Control.
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All businesses need finance. The success of any business depends on the availability of sufficient funds. Funds are needed for fixed assets such as machinery, vehicles, etc, and working capital such as cash for expansion purposes, research studies, marketing expenses and general operating expenses such as cushioning the effects of unexpected losses.
For any small business to succeed there must be the achievement of any desired goal or objective. This depends on the availability of reliable and economic sources of finance.
In addition, borrowing should be properly controlled. The use of borrowed funds should be properly managed. In fact, it is safer to always ensure a business debt is not more than forty(40) per cent of its total worth.
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