How do I know how much money I’ll need to start a business?

24 Nov How do I know how much money I’ll need to start a business?

First, let me suggest that you work very closely with your financial adviser and accountant when making any decisions regarding the financial health of your business.

That being said, what you’ll need as far as start-up capital begins with equipment and building needs such as lease, equipment rental and purchase, and upkeep on all of it for a year. Next you’ll need enough for both fixed and variable operating costs, which include your salary as an owner, telecommunications (internet service, phone service), and money to repay your loans in the interim, among other things, again for at least a year.

Make sure when you’re writing your business plan to work these costs out and talk with your accountant to help provide accurate estimates of what the variable costs will run.