“Figuring out how much cash you really need to start your business”
…..The type of business you start plays a critical role in determining the amount of start-up funds you require, says Lovero. “A retail business, for example, can regenerate revenue immediately, whereas service businesses typically have to wait between 30 and 90 days before they’re paid,” she explains. “These facts give you some idea [as to] how much working capital you’ll need during the early months.”
The following four scenarios provide a window into situations you may someday face-and might help you avoid mistakes when predicting your start-up expenses….
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