Before you start your business, you need to know exactly how much capital you will need to get started. You need to create a good business plan and estimate how much you might need to start your business. If you underestimate your needs then you might soon run out of money. If you overestimate it you might never be able to start your business. You will need to know the solid figure. Here are some good sources from which you can get a good estimate about your business.
1. People in the business
People who are doing similar business can tell you how much you need to start your busienss. You can go to entrepreneurs outside your geographic area to get the right information.
2. Sources of supplies
Suppliers can tell you about the start up costs. They have experience in dealing with different businesses. So suppliers of businesses that are similar to yours can be a good source of information about the start up cost of your business.
3. Trade associations
Trade associations can actually give you a sample financial statement of an established business in your niche. This is a very good source of information.
4. Business consultants
A qualified business consultant can give you excellent advice on your start up costs. He or she will do intensive research before giving you an estimate.
Use any of these sources to get a good estimate about your business. But you need to present a practical business plan to them before they can give you an estimation for your business start up cost. You need to calculate the costs of your business including capital cost, fixed cost and variable cost. Then you can get a rough idea about how much money you have to accumulate to start up your business.