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Should start-up capital and running capital be recorded in the same ledger without differentiation in starting up a business? Then how does the entrepreneur recompense himself/herself at the instance of such start-up business?

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Your running capital is part of your startup capital. It's only that your running capital is retained in cash(liquid asset) for the running of the day to day activities of the company. E.g Your total startup capital could be #3m. Out of that #3m, you are expected to set aside a certain amount as your working(running) capital. 2) Put yourself on a salary.

Report korede's answer

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Unfortunately, many business owners who start a business cannot afford to pay themselves. They have to cut their own personal expenses in a very serious way so that funds can go into the business. If you obtain funds from others such as outside investors or a bank, then they expect you to use most of the money for actual business expenses – marketing, property maintenance, legal support, etc.

If you pay yourself, then try and pay yourself just enough to get by until the business has revenues and profits to support a real salary. I realize this is hard, but it is a real fact of life when it comes to many startup businesses. Since investors want to fund the actual business, you need to be very frugal when it comes to paying yourself. Shark Tank provides some examples of this problem. Listen to what happens starting at 3:30 into this video > https://youtu.be/UVik4I48Ee0

Report Matt's answer

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