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
- Add up one-time startup costs: equipment, deposits, licenses, initial inventory, a website.
- Add operating costs for the first few lean months — rent, supplies, and your own basic pay.
- That total is your number. Pad it a little; things cost more and take longer than you expect.
- 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.