How much do I need to start my business?
Inputs Next Steps

One-time expenses
Computer and telephony equipment and software
$
Furniture and fixtures
$
Office supplies
$
Legal fees
$
Licensing or other fees
$
Marketing costs
$
Prepaid insurance
$
Security deposit or down payment on property
$
Utilities deposits
$
Other
$

Ongoing monthly expenses
# of mths.Amount
Rent or mortgage
$
Employee salaries
$
Owner salaries
$
Utilities
$
Marketing
$
Administration
$
Insurance
$
Rental costs
$
Franchise fees or other commissions
$

Supplies
$
Other
$

This tool helps you determine how much money you should budget and have available to start your business. The amount of capital needed is estimated by multiplying the total costs entered by 1.25.


Without adequate capital, you may face a cash crunch and may spend valuable time and energy taking care of cash flows instead of building your business. A cash crunch often forces you to borrow at high interest rates or make additional concessions to investors.

Be sure to have enough start-up money to cover your ongoing expenses for the first few months of business. A good rule of thumb is to budget for at least three months of ongoing expenses.
Ongoing expenses: Those expenses, such as for rent, utilities, payroll, insurance, and sales, general, and administrative (SG&A), that you pay on a regular basis, even in the early stages of beginning a business.
Legal fees: Expenses to pay for registration of your business. Legal fees to establish a corporation are generally higher than to establish a sole proprietorship, the simplest form of business ownership.
Utilities deposits: Telephone, water, and electricity utilities may require you to make a deposit when you open your business.
One-time expenses: Those expenses, such as for real estate acquisition, legal and administrative services, and deposits, that you pay only once in the early stages of beginning a business.
Office supplies: Office supplies include printer paper, notebooks, pens, folders, clips, staple equipment, calculators, and related goods.
Marketing costs: Marketing costs may include expenses to pay for an initial round of advertising or market research.
Rental costs: Rental costs include rent and other fees related to the maintenance and upkeep of the property.
Prepaid insurance: You prepay insurance premiums to coincide with the launch of your business. An insurance policy provides coverage from the date that you want to begin your business.
Cash flows: The revenue or expense stream that changes a cash account for you or your business. Cash flow is crucial to an entity's survival. Having ample cash on hand will ensure that creditors, employees, and others can be paid on time.
Leadfusion CALCULATORS: Small Business Email Results

The Northwestern Mutual Life Insurance Company, 720 E. Wisconsin Avenue, Milwaukee, Wisconsin, 53202-4797.

The calculators are provided by a third party service provider, Leadfusion, Inc. The figures entered on the input page of this calculator are for hypothetical purposes only. You should enter figures that are appropriate to your individual situation. The results provided by this calculator are also intended for illustrative purposes only and accuracy is not guaranteed by Northwestern Mutual. This calculator is not intended to offer any tax, legal, financial or investment advice and does not assure the availability of or your eligibility for any specific product offered by Northwestern Mutual, its affiliates or any other institution, nor does this calculator predict or guarantee the actual results of any investment product. The terms and conditions of products offered by institutions will differ and may affect the results of the calculator. Please consult with qualified professionals to discuss your situation.

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