Figure out how much money you actually need

Before you look for a dime, know your number. Ask for too little and you stall out; ask for too much and you're paying interest on money you didn't need. The right amount covers your one-time startup costs plus enough runway to reach the point where the business pays for itself.

Do this

  1. Add up one-time startup costs: equipment, deposits, licenses, initial inventory, a website.
  2. Add operating costs for the first few lean months — rent, supplies, and your own basic pay.
  3. That total is your number. Pad it a little; things cost more and take longer than you expect.
  4. Write down exactly how you'll use it — every lender and investor asks, and a clear answer builds trust.

Your funding number

Two buckets. Add them up:

ONE-TIME STARTUP COSTS Equipment / tools ................ $______ Licenses, permits, deposits ...... $______ Starting inventory / materials ... $______ Website / signage / branding ..... $______

RUNWAY (first 3-6 months of operating costs) Rent / space ..................... $______ Materials, fuel, subscriptions ... $______ Your own basic pay ............... $______

──────────────────────────────────────────── TOTAL FUNDING NEEDED ............... $______

Then one sentence: "I'll use it for ___." Vague asks get declined.

Part of: Fund Your Business

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