 Oftentimes the first couple things that happen in a new business is that we need to finance the business We need to generate capital. In other words, we need cash So to think about why that is or to think about the process I'm going to open up the balance sheet again, which I closed Just a quick recap if we look at the the accounting equation assets equal liabilities and equity on the balance sheet The assets represent what the company has now notice that this is different than personal assets We don't just have the assets in the company in order to you know, just hold on to them We have them in the company as an investment. So the assets are kind of like an investment Why are they in the company and not in our personal investments? Because we want the assets to generate revenue in the future We think they're going to get a greater return in the business than they would in some other place That's why they're there and then the liabilities and the equity is how we're financing the assets That we have in order to generate the revenue Now different kinds of businesses will have different needs in terms of how much assets they're going to have to need on hand So if you're in a type of business that requires a large capital investment possibly for the purchase Of property planting equipment like a farm like farming or something like that Or any kind of business where you need equipment construction and whatnot in order to do Then what you're trying to do is get money, of course Through financing either you put the money into the business because the equity is not going to be there from business activity at this point because you haven't earned any revenue and you can't Until you get the property planting equipment or you finance it with a loan or some combination of the two In order to buy the assets which might be fixed assets property planted equipment Whose value is there in order to help us to generate revenue in the future? That's the general idea for the first thing we need to do oftentimes Is get that money through a loan or from us putting money in the business taking it out of our personal account And putting it into the business now note if you're in other kinds of businesses Some businesses do not have that big barrier to entry for the purchasing of the capital investment So if you start a youtube channel or something like that or you do You do gig work or something then you might not have a lot of upfront cost Which is great and great stuff to get into but at the same time With the lower barrier to entry there's usually more competition and those kind of businesses So that's the general how it generally works. So now we're going to say okay We're going to finance the business By putting money into the business We'll do one with us putting money in From the owner into the business to finance the person purchase of say fixed assets And then we'll take we'll also enter a loan