How Much Initial Capital Do I Need?

I don't want to run out of money to build my company before I have it off the ground. How much money do I need to start my company?

It is generally a good plan to have enough cash on hand to be able to carry your business through one full cycle. A business cycle is typically one year or less -- during which the inventory or your customer base is completely turned over. The length of this time, of course, depends on your business, but when raising money, always try to raise enough to carry you through the next major risk window or up to the next level of accomplishment. You'll also want to tack on a cushion of three months -- just in case.

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