Start-up Capital

Nathan

If you were going to start a business right now, how much start up capital would you want to have in reserve?

For this example let's assume that your equipment is paid for.
I'm talking about money you would use to advertise, cover your salary, and employees salaries while you get the business off the ground?

Thoughts?

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Nathan

"He is no fool who gives what he cannot keep to gain that which he cannot lose." - Jim Elliot

hatchet

Let's look at what would need to be covered and for how long.. I would say minimum 6 months to be safe.
Advertising - $1000 / mo
Salaries @ avg 25/hr * 160 * 4 = 16000/mo
Owner salary - same 4000/mo or less
Misc - 1000/mo

$130,000 - best case scenario - assuming that it's already a saturated market so you may need to cut fee (profit) to get jobs.

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Rich
WIT Construction Co.
Superior MT Contractor

Grumpy

I did a spreadsheet of this for my own company. Want me to e-mail it?

I figured about 20k just to open my doors.