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Start-up capital

How much money do I need to start my small business? 
This is an excellent question but you should be asking: how much capital do I need to start my business and fund the months or years that will be required to keep it going while I carve out a niche in the marketplace.

In the beginning, you're going to be faced with two kinds of expenses while you have little or no revenue:

- One-time start-up expenses, like for signage, incorporating, lease deposits, etc.

- Recurring monthly operating expenses shortfalls you'll encur, at least until you've generated enough gross profit to reach break even.

So how much is that? You'll know how much that is when you develop a vertical budget and horizontal cash flow statement. Then add a cushion for the inevitable start-up delays and problems.

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