Wealth And Finances In Online Business Building Financial Capital

Wealth and Finances, discovering the use of financial capital.
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It’s super easy to get stuck on the strategies surrounding the subject “how to blog,” and forget that there is more to building an online business.

Understanding how to blog may earn you some money but having clarity on how money works when it comes to your business can help you build a healthy financial portfolio that leads to wealth.

If you had $100,000 to invest in your online business, how would you distribute that money to increase your bottom line?

These are the money conversations that you should be pondering. Knowing how to use the money that is borrowed or earned through your business is essential to your overall success.

The money that you’re using to support and grow your business is called Financial capital. According to Wikipedia, “Financial Capital is any economic resource measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or to provide their services to the sector of the economy upon which their operation is based, i.e. retail, corporate, investment banking, etc.”

The most important aspect of financial capital when it comes to your online business is how much return are you getting for the capital you’ve invested.

In other words, if you need video, audio, or managed WordPress hosting, to run your online business, the sum of that cost plus any other expenses would be your capital.

Your profits minus your capital converted to a percentage would be your rate of return. No worries, it’s all explained in the video below.

It’s important to understand capital because it allows you to measure your return rate. When you know your return rate, you can make the necessary changes to grow your online business and cut unprofitable ventures related to it.

We are going to continue to ease into these money conversations because you don’t want to just build an online business; you want to leverage it for wealth building as well.

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