Working capital is an important part of any business strategy. Whether it is an established or a start-up business, without enough working capital neither will survive for long.
Working capital is essentially the amount of money that any business needs to take care of day-to-day operation costs.
If there is a lack of working capital, you will find it difficult to manage a smooth running of your business. If it is a manufacturing unit, you will need a large working capital to purchase raw materials, pay wages, salaries, and other overhead daily expenses. For a start-up business, you need to have enough working capital to reach a break-even point.
