When I need money or is planning to have a loan, I usually set up an amount that I am sure of paying when needed to. I take include extra money on the loans that I might be needing in the future to secure what I need, and if I can pay it in due time as well.

To answer your question directly, the easiest way to find out how much you need is to look at your cash flow statement, there should be a line item named Net Cash After Operations.  This represents how much cash your "normal" business operations generate (excludes interest income, etc).  A good rule of thumb is to add up the aggregate deficient (negative) NCAO as long as it's negative.  If you're expecting to "burn" (generate negative) cash for the first year only, than you'll need a loan (or equity) in that amount.  If you're expecting to burn cash for two consecutive years, you'll need the total of that amount.   Again, you should give yourself some cushion.  If you're expecting to burn $25k in year one and $10k in year two...I'd look for $50k of financing if I were you.  But only if you're confident you'll be able to pay it back with interest on time.  Otherwise you risk hurting your credit score.  Make sense? There is a popular saying in the VC world that take the number you think you need based on your biz plan, and double it.  Things ALWAYS take twice as long and twice as much $ as you think.   That being said, you want to be careful not to put too much "leverage" on your company too quickly. Especially if it's a startup.  You should take a hard look at debt risk versus equity risk.  If you received a loan tomorrow for exactly the amount you're looking for, are you confident you could make the principal & interest payments on time?  If not, you probably need equity, not debt.  The SBA has a some really flexible loans, and there are helpful online resources like www.plurafinancial.com and peer to peer lenders like www.prosper.com that can help you find lenders and optimal debt terms.  But before you get a loan, you need to be sure you can pay it back (on time).  For the same reason a bank requires you to have a job to get a mortgage you'll need a dependable source of repayment.

It depends on your type of business and how quickly you plan to expand. You should sit down and write out how much your expected expenses will be for at least the next 24 months and how much you project to bring in as far as income on a monthly basis. There are several companies that can help you get started with funding your business. No credit check payday loans -- this post was edited to remove a commercial link

You can also take a look at How Much Money will I Need? Getting a spreadsheet with all of your estimated startup costs and then your recurring expenses and income will give you a rough idea. Remember that many small business run into a problem with cash flow, so you also need to take into consideration when money is coming in and going out. JimD

Woen boutique is a well known business. Sorry, I have no more idea how much money need to start a small women's boutique.   You can get idea from women's boutique that are located in northeastern PA  that are running sucessfully.   Secondaly make a list of all items and equipments and include their roughly price. Add all the price and you can get an roughly idea from it.   You can get idea from expert that are familiar with women's boutique business.      

There is an even bigger issue here: What do you do if you don't have enough money? It is relatively easy to say that $X is needed because that is what the business plan says. In truth, however, it is nearly impossible to predict just how much will be needed. Having worked with literally thousands of entrepreneurs in creating business plan projections, I can confidently say that the projection are wrong about 95% of the time. Some too high, some too low. And there are nearly always circumstances that are unexpected. It is the unexpected circumstances that are truly important. An entrepreneur needs to have the skillset in her pocket that will help her through unexpected expenses. Of course, no one can plan for a Katrina or an oil spill. But what if the street is torn up in front of your store? What will you do? What if a Walmart is built just a mile from your new store? How will you promote your store to still get business? I know businesses where both of these events happened. The confidence and skill with which each owner handled the difficulty made all the difference between success and failure. So, yes, do the formal projections. But more importantly, look to yourself. Do you have the personal confidence to handle problems in your business? MaryAnnBusiness Plan MasterStart and Finance Your Business Now ---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.

In you business plan you have the answer. But when you plan the amount of money for your new business, you need to do a plan A, Plan B and insclusive plan C.  Just think like the NASA, 'fail is not an option'.

Christine, In case you use some business plan software, there should be a financial planner built in. The main goal with financial planning is to find out when and how much additional financing may be needed (and when it may returned). You input the sales forecast, expense budget, investment plan, your own contribution into equity capital, loan(s), and then check that the cash flow balance is at least positive every month. If not, add more financing and check again, etc.

When you create the plan income corporate profit and loss account and balance sheet, you can determine how much money you need at least get a zero result. Business plan, you should also create an cash budget - not only this will help you understand how much you should - even when it is needed.

Your business plan should give you the answer to your question. Do a pro forma budget based on real world costs. You should know what rent, utilities, taxes, insurance, advertising, etc. will cost before you open your doors. Project realistic sales for the first year and you will have an idea of how much cash you will burn through until you hit your break even point. To me it is as important to have a plan that also tells you when it is time to pull the plug and close the doors.   Wish you much success.