How Much $$$$ Do You Need?

You need money to start a new business--but how much exactly? Use our Cash Flow Calculator to add it up.

How much money do you need to start your business? That depends on the type of business you're starting. A service business can get started with just a minimal investment for things like marketing, phones and computer equipment. A retail, restaurant or manufacturing business will take a much larger investment. And don't forget, you will need to calculate two centers of cash, the amount you will need just to get your new business started, and the amount you will need to pay your operating expenses until your business reaches a break-even point.

Make a list of all the things you will need to just get open.

Start Up Costs Include:
  • Equipment and Tools
  • Inventory
  • Fixtures
  • Lease Costs
  • Office Supplies
  • Signs
  • Pre-opening advertising
  • Web site development
  • Fees and permits
  • Business Cards/Letterhead
Now make a list of all the operating expenses you will have to pay for each month after you start your business. Operating Expenses Include:

  • Rent
  • Utilities
  • Supplies
  • Payroll
  • Taxes
  • Advertising
  • Insurance
  • Bookkeeping
  • Legal Fees
It is essential that you work with hard numbers. If you don't have the actual figures now, estimate how much these items will cost. Use our Cash Flow Calculator to prepare a budget that is a "road map" for future growth in your business.

Then start networking with people who are already in the business, real estate agents, trade associations, etc. to gather the true amount that it will take to open and run your business. If you're starting your business without a solid knowledge of what your real costs are, you're operating in the dark.

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