When starting a business, you need to ensure that it stands a chance to succeed. To do this, you need to have adequate capital that can jumpstart and sustain the new business.
The main question is: How do you know how much capital you will need? The first step is to know how much it will cost you to run your business and how much money you are likely to make.
Seth Godin in his book “If You’re Clueless about Starting Your Own Business
Keep in mind that it could be some time before your fledging business realizes a profit – so make sure you get sufficient start-up capital to keep it running during that initial phase. The SBA advises that you should have enough cash to cover operating expenses for at least a year to avoid being one of those sad statistics of new business failures.
To better understand the startup capital you need, read the article ” How Much Do You Need to Start Your Small Business?”
