So, when you’re looking to start a business, it’s really important that you figure out what your startup costs are gonna be so that you’re not blindsided by extra expenses or realize that you don’t have enough funds. When you’re halfway into it and it causes more delays and roadblocks, then usually the best way to do that is like a three step approach. First, think about assets like, depending on the type of business you’re running, if your auto repair shop you might need more assets like tools and equipment to purchase upfront in order to actually do the work. If you’re in a service-based industry you may need very little like a computer or cell phone or you know a printer scanner those types of things so make a list of what equipment and actual assets you’re going to need to purchase in order to get the company up off the ground in the beginning, and then you can obviously put numbers to what those assets are costing from a fair market value right now and total those up and you’ll get a number for what you need in assets. The next one we talk about is expenses. Well, that’s an interesting topic because expenses and assets aren’t treated the same. So expenses you might be looking at are like internet bills, cellphone bills, rent, expense, anything that you are going to need that you know you’re gonna need to operate the business. It’s gonna have an expense directly associated with it. If you’re renting an office space you might also have utilities and stuff like that so really think about what those expenses are. Lastly is the operating cash because just because you have your assets and you figured out your expenses and you add those up and you have enough money for all that you need to plan that a lot of businesses aren’t profitable from the very beginning so you want to have enough operating cash in the bank depending on the type of business to last you at three to six months usually on a service business type and if you’re doing something more capital-intensive like a restaurant or something like that then you would probably want to have at least twelve months of operating capital in the bank on top of what those assets and expenses are to make sure that you have enough funds and then you just add those up and make sure that you can acquire that from the onset because that’ll keep you from having a lot of problems along the way and get you up faster.

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