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Initial capital for professional start-up

Question
How much initial money should I set aside before starting my independent professional practice? 
Answer
Seed money required for an independent professional practice -- such as a consultant -- is vital to success. Every start-up needs initial working capital to carry it until sales revenue produces at least the cash flow breakeven point.

One rule-of-thumb is to set aside at least six months of living costs. But plan your expenses by writing a business plan that estimates your revenues, living expenses and business expenses.

You must be realistic. Living costs may be less than if you were working for a company, but underestimate your business expenses at your own peril. Having that financial cushion will allow you to wisely choose the right projects and clients to work with - without undue financial worries or appearing desperate to prospects.

Search again for cash flow. 
Brain Trust contributor: Author of Warp Speed Growth and Creating and Dominating New Markets
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