Initial capital for professional start-up

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.