๐ Picture this: You're about to launch your dream business. You've got passion, a killer idea, and a vision that keeps you up at night. But there's this mysterious world of financial terms that feels like a complex puzzle. Today, we're unraveling one of those puzzles: Share Capital. 1๏ธโฃ Authorized Capital What It Is: Picture the blueprint for your future mansion. Your authorized capital is like that big number on paperโitโs the maximum amount of shares your company could offer if it wanted to. Why It Matters: It sets the stage for growth. Youโre not forced to build all those rooms at once, but itโs good to know you have space to expand when the time is right. 2๏ธโฃ Issued Capital What It Is: Now, letโs say you decide to start building just a few rooms instead of the whole mansion. Issued capital is the portion of that grand blueprint you actually put into action by offering shares to investors. Why It Matters: It shows how much of your โhouseโ is currently open to residents (a.k.a shareholders). Investors love clarity about how bigโor smallโthe piece of the pie is. 3๏ธโฃ Paid-Up Capital What It Is: Hereโs where the rubber meets the road. Paid-up capital is the actual cash investors have handed over to you for their piece of your dream house. Why It Matters: This isnโt just a promiseโitโs real money in your companyโs bank account. This capital fuels your operations, helps you build that next product feature, or hire that key team member. This is Day 1 of our 100-day journey into demystifying finance for entrepreneurs. Are you ready to turn financial complexity into your competitive advantage? ๐ก Your turn! What financial term has always puzzled you? Drop a comment below, and let's learn together! #EntrepreneurialFinance #StartupLearnings #FinancialFundamentals
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