article thumbnail

Artisans Must Balance the Books

Harvard Business Review

As more people depended on him, he spent his working capital, and the business failed. When artisans have no understanding of their cash flows, they fail prey to spending a big percentage of their working capital, without meaning to, on non-business issues that usually cripple their operations.

Books 14
article thumbnail

A Playbook for Making America More Entrepreneurial

Harvard Business Review

A Main Street small business might require a term loan from a bank to buy a piece of equipment. A supplier might need a working capital loan to finance a big order. The types of capital generally split into two areas: Debt and Equity. Providing a guarantee verses a direct loan has a number of advantages.