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The first few months of opening your own doors for business can be an overwhelming proposition for most new startups.

Small businesses and startups (mostly service-oriented) ask me for how much should we raise or take loan after basic investments? Here's a simple math that works fine: Base money: Get expenditure for the next 6 months covers (this is min. Better is 12 months) Wastage: Get additional 20% for wasting charges (all company waste money in additional stuffs not needed) Lo an installments: Make sure you don't have installments from day one. Else include them too. What to do in these 6 months? Do enormous tests: assign 10 customer/sales to each test depending on your product or service. each test shouldn't go beyond 2-3 weeks. take a note of everything you learnt from these tests. Prepare a plan: now take a list of approaches you are going to follow from your observation of your test. Define target market: Keep only 1-2 in mind and washout everything else. What to do in next 6 months? focus, focus: Scale up on that target market and on that approach, while experimenting narrowly on side. Do scaleup investments: hire, productivity tools etc. If needed take another funding for 6-12 months: Make sure you are doing good in that. Hope it helps. Please if it was helpful signup and make other sma

Keep your projects profitable. Structuring your project cash flow. Why web designing and IT services companies face cash flow issues?