Estimate the total capital required to launch your business and sustain operations during the initial phase.
One-Time Capital Expenditures:$0.00
Operating Reserve (Runway):$0.00
Total Startup Capital Required:$0.00
Understanding Your Business Startup Costs
Starting a new business is an exciting venture, but financial planning is the cornerstone of long-term success. Many entrepreneurs fail not because their idea was poor, but because they ran out of cash before the business became self-sustaining. This calculator helps you visualize both your Capital Expenditures (CapEx) and your Operating Expenses (OpEx).
1. One-Time vs. Recurring Costs
Startup costs generally fall into two categories:
One-Time Costs: These are expenses incurred during the setup phase. Examples include incorporation fees, purchasing machinery, initial office furniture, and logo design.
Recurring Costs: These are the "burn rate" of your business. They include monthly rent, software subscriptions, salaries, and marketing budgets.
2. The Importance of "Runway"
The "Cash Runway" refers to how many months your business can survive if it generates zero revenue. Most financial advisors recommend a minimum of 6 to 12 months of runway. This safety net allows you to pivot your strategy or wait for long sales cycles without the stress of immediate bankruptcy.
3. Realistic Example: Small E-commerce Store
Imagine you are launching a boutique online store: