How Much Money Do You Need to Start a Business?

Startup is two numbers, not one

Capital expenditure — equipment, fit-out, stock, registration — is the visible bill. Working capital — cash to pay rent, salaries and suppliers before customers pay you — kills more startups than the launch cost.

Rule of thumb: hold at least three to six months of fixed operating costs in cash on day one, on top of setup costs.

Under-estimate revenue, over-estimate time

Build a cash-flow forecast with revenue starting later and lower than your best case. If the business only works with optimistic sales in month two, the plan is fragile.

Include your personal drawings — you still eat while the business loses money. Separate business runway from household emergency fund.

Size the goal in MyGenie

Startup capital is a WANT goal at today's money — the amount you need before opening doors. MyGenie's Starting a Business calculator models capital required, runway months and household impact if income drops during launch.

This article is illustrative and educational. It is not financial, tax, or legal advice. Figures are examples only — model your own situation in MyGenie or speak to a licensed financial adviser.