Many small business owners invest their money to help other businesses. These funds will help to establish the first share capital of the company.
So the commercial capital is defined in the value of the assets after reducing the liabilities that the company went.
So if we own the business, you have a certain right to the specific values â€‹â€‹that are within the company. It is also responsible for assuming responsibility for specific obligations. In this way, equity is going to issue the relationship between assets and liabilities of the company itself.
Assets are the elements of value such as inventory or trademarks among other possibilities. They can be tangible or intangible, that is, those that can be touched or not.
In the case of liabilities, they can be defined as the debts that the company itself has, such as the employee or the organization, among others.
When the capital is positive, you usually have more assets than liabilities, something that does not happen if the capital is negative.
Equity is calculated as:
Equity = Assets – Liabilities.
This will act as the balance sheet. Also, it is possible to use this formula to calculate the assets that we will need to achieve equity.
In this way, equity has to do with the specific ownership of a business. This means that the number of owners of a company will affect its equity. If the owner is one, he assumes all ownership of the business, but if there are more owners, that capital goes to all.
Therefore, small business equity crowdfunding is one of the ways that are sought to be able to obtain that money that is so much needed for projects. In this way, from JustEarlyBird we can advise you on the process to obtain this financing and make it easier. Also, if you want more information or contact us on our website https: / /justearlybird.com/.