No two businesses are alike even if both belong to the same industry. This is because each going concern has specific requirements and that includes the amount of capital it needs to operate.
So how do you go about determining the amount of capital your startup needs? What should you do first and foremost?
The first step is to come up with a checklist of all items (big or small) required by your business. Use info found on the web or from other reliable sources to have an idea on how much each item costs. Do not skip this step because mere estimating without proper research could lead to disaster. Prospective financiers might pass up on your funding application if they see that the numbers you are presenting are not close to what’s real.
As a startup, you’re understandably cautious about your initial capital outlay. You’ll want to get by with the least amount of capital without compromising your business. Every item you buy must be carefully thought out. Buy the “needs” and put off the “wants” for now.