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Cash flow question

    • 355 posts
    June 16, 2010 1:31 PM EDT

    The question I would ask is “How did you arrive at your selling price?”   Is it high enough to actually allow for growth of your business?  The Harvard School of Business has a wonderful tool for calculating your percentage of markup based upon your acquisition cost for an item.  Might be worth checking your selling price with this tool.

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    The older we get, the more excuses we make for not chasing after our dreams. But truth is, goals are attainable at any age.

    • 3 posts
    June 12, 2010 2:19 PM EDT

    Hey all, I hope someone can help me with my issue.

     

    I stated a business selling a product that I basically buy from individuals and resell online and to some other small companies. I started out just purchasing a few hundred dollars worth of product a week and doubling my money. 

     

    My biggest expense is advertising in the newspaper and also online.

     

    I did not have any starting capital and just used my personal money i have in the bank.

     

    So here is my problem.

    I generat about $10,000-$12,000 a month in sales. My cost to purchase the product is about $4,000 a month and my expenses are around $1,500.

     

    Well as soon as I make my profit I have to use the money to buy more product.

     

    What can I do to build up some capital?

     

    Thanks

     

    Steve 

     

     

      

     

     

     

    • 3 posts
    August 16, 2011 3:11 AM EDT

    Hi all, this is great information and advise. I have not been it the forum for awhile so this is a very late thank you.

     

    Steve