The operating capital of a small store refers to the funds for purchasing goods, which is usually three times the monthly turnover of the small store. Because in actual business, the first batch of goods purchased by a small store is likely to be wrong, and the second batch of marketable goods must be purchased in time, otherwise the small store will fall into a dangerous situation. Therefore, small store entrepreneurs must prepare sufficient funds when doing business. 1. After the reserve store is officially opened, to know whether it is on the right track, you should check the financial statements. Many small store entrepreneurs do not have a good financial plan at the beginning. They do not understand how much net income they make in a month, how high the actual gross profit rate is, and they do not set aside working capital for themselves. As a result, they often end up with poor turnover of a sum of money. It is a pity that the business failed. Therefore, in addition to preparing up-front reserves in the early stages of opening a small store, you should also set aside three to six months of reserves. In the early stage of opening a store, you must first have enough start-up capital, then working capital, and the last thing worth mentioning is the risk reserve. If the demand for these three types of funds cannot be met, it is very likely that the operation will end miserably due to a "stop flow" of funds. The flow of reserved funds. When small stores purchase goods, they usually settle with the manufacturer on a "cash on spot" basis. They will not sell products from manufacturers on credit like hypermarkets and large stores. Although some small stores sometimes try to negotiate "credit sales" with manufacturers for some newly launched products, due to the relatively low negotiating position of small stores, they lack the confidence to ask for "credit sales". Therefore, after repeated attempts by the manufacturer's sales staff, If you persist, most small stores will use cash to purchase goods. Since the settlement method of small stores is "cash on spot", their demand for funds is more urgent than that of some large stores. Therefore, if small store entrepreneurs want to minimize business risks, they should try their best to "enter less and leave quickly" way to purchase goods, speed up inventory sales, and ensure that funds are withdrawn on time. This not only improves the store's capital turnover rate, but also reduces the store's operational risks. Therefore, reserved funds should be used in this area. 2. Try to avoid credit. For business people, credit is the most taboo thing. Compared with cash transactions and credit sales, the latter has fewer advantages and more disadvantages than the former: it is not conducive to capital turnover; it affects profit recovery; it is impossible to pay taxes on time; debt collection will take up too much manpower and financial resources; it is easy to get credit, but very difficult to collect debts; Due to special reasons, bad debts and dead debts may occur. When the purchase and sale of goods does not form a relatively stable sales channel, cash transactions should be carried out, which is beneficial to both buyers and sellers. Once there are too many credit accounts in a small store, it will have an adverse impact on the capital operation of the small store, causing the small store entrepreneurs to be unable to make ends meet. Over time, the store will struggle due to too much credit and will eventually have to close. 3. Do not borrow more than your own funds and do not be a slave to debt. This does not mean you should give up borrowing. When a small store reaches a certain scale, there is indeed a need to expand investment, but when the small store entrepreneur's own funds cannot meet the needs, borrowing is undoubtedly a better way. Let’s take the clothing store as an example. Clothing stores focus on popularity and therefore have higher capital turnover requirements. When you encounter difficulties in capital turnover, you can apply for a loan from a financial institution as long as you have one-third of your own funds. But small store entrepreneurs must have a clear understanding of the concept of "one-third." For example, if a small store needs 150,000 yuan in working capital, then you must have at least 50,000 yuan. Before borrowing, small store entrepreneurs must calmly calculate and analyze how they will repay the loan after borrowing the loan, and accurately calculate where to borrow the remaining 100,000 yuan and what the interest will be. The most important thing is to make a loan repayment plan. This is a matter of course, but most people often ignore this and make serious mistakes. Therefore, when borrowing, you should carefully consider whether you can afford the loan interest and whether you have a monthly principal and interest repayment plan, which must be repaid monthly in accordance with the contract.