Your own hustle · Module 3 of 3
Running it without it running you
A cushion for slow months, borrowing wisely, going official, paying helpers, and paying yourself a steady amount.
Key terms in Running it without it running you
- Working capital
Working capital is the amount of current assets a business has left after its current debts are paid. It measures the short-term cushion available for day-to-day operations, such as buying supplies and covering bills while waiting for customers to pay. The Small Business Administration lists it among its core business financial terms.
Source: U.S. Small Business Administration, Glossary of Business Financial Terms
- Business line of credit
A business line of credit is a flexible form of borrowing that lets a company draw funds up to a set limit as needed and pay interest only on the amount in use. Amounts repaid can generally be borrowed again. The Small Business Administration describes lines of credit within its 7(a) Working Capital Pilot as a way to meet ongoing operating needs.
Source: U.S. Small Business Administration, 7(a) Working Capital Pilot program
- Limited liability company (LLC)
A limited liability company (LLC) is a business structure, created under state law, that combines features of a corporation and a partnership. In most cases it separates the owner's personal assets from the business's debts and legal claims. Profits typically pass through to the owners' personal tax returns. The Small Business Administration contrasts it with a sole proprietorship, which has no such separation.
Source: U.S. Small Business Administration, Choose a business structure
- Employer Identification Number (EIN)
An Employer Identification Number (EIN) is a federal tax identification number the Internal Revenue Service assigns to businesses, estates, trusts, and other entities. It identifies the entity on tax returns and deposits and is commonly required by businesses with employees, partnerships, and limited liability companies. Banks often ask for one when opening a business account.
Source: Internal Revenue Service, Employer identification number
Every term on Lever is in the money glossary.
About this module
Running it without it running you is part of Your own hustle, one of 15 subjects in Lever. It’s a short run of 8 lessons, about 20 minutes in all, so you can finish it in one sitting.
Every lesson takes one idea at a time. You read it with the math worked out step by step, answer a question that puts it to use, then see why the right answer is right and why the others aren’t.
It’s for anyone who was never taught this, and you don’t need to know anything first. Every lesson is free. Lever works out what you already know, so you can start here or let your path bring you to it.
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It’s part of Your own hustle. Lever will bring it to you when you’re ready, or you can go straight there.