To estimate the first pot of money, make a list of all the things you will need to just get open. This might include equipment, tools, inventory, fixtures, lease costs, office supplies, vehicles, signs, pre-opening advertising, fees and permits, and everything else you can think of. Opposite each of these items, put an estimated cost. If you don’t know the cost, find out. If you have uncertainties, estimate on the high side. Add up the amounts and you have the size of this first pot.

The second pot of money, to be used for operating expenses, involves estimating your cash outflow for all the things you will have to pay for after you start your business. This might include such things as rent, utility bills, gas for vehicles, supply replacement, payroll, payroll taxes, advertising, insurance, bookkeeping or legal fees, etc. If you will estimate each of these items for one month, you can multiply the months’ totals by the number of months you think it will take you to reach cash break-even.

When you will reach cash break-even is a judgment call by you based on what you know about your business and like-type businesses. If you are going to err, err on the side of conservatism. It will be far better to have too big a pot of operating money than to run out of operating money.

The sum total of these two pots is the amount of money you will need to start your business. Do not start before you have this amount or know where it will be coming from. For more information on this topic, see your local SBDC.

There are many government grants designed to assist business, but these usually don’t go directly to the business. Instead, they go to agencies and organizations that perform some service for business or benefit business in some way. The Small Business Development Centers throughout the United States operate partly on a grant from the federal government.

The books and late-night television infomercials that tout government grants for business are usually exercises in cleverly misleading entrepreneurship. Read the fine print carefully and "buyer beware." For more information on this topic, see your local SBDC.

Some CPA’s specialize in advising small businesses. The Small Business Administration has significant information available, as does the Internet. Type in "small business help" or "free business assistance" on any of the Internet search engines and you will get more information than you could ever read.

Some banks have small business specialists and are glad to help. Chambers of commerce, economic development associations, and other community agencies offer information and contacts. Most states have agencies devoted to assisting small business. Private consultants in small business and business topics are everywhere. Check your phone book.

Finally, people who have been in small business or are presently in small business are excellent sources of information. Some will gladly help you learn and gather information. For more information on this topic, see your local SBDC.