ESYB2 068 - Worksheet Existing Business Expenses and Calculating How Much You Need to Raise
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[00:00:00] Now here's a worksheet for calculating how much money you need to run the business on an ongoing basis after you've launched. And you see many of the items here, they're the same. I'll only get rid of a couple of them. Business registration, you don't actually need because you're already past that, but everything else you need to keep.

Not every business will have every one of these elements, but just note which ones you have. Domain name, you know, you got to renew that every year. It's still 10 per month, so it's like, let's say, 1 a month. And so you need to do this on maybe websites instead of development, you need to do maintenance and maybe maintenance will be like 100 a month or 50 a month, but it is monthly.

And so you would fill this out, usually on an ongoing basis, employees and rent take most of the money. If you have a business that doesn't have employees or rent, it may be product development or [00:01:00] Inventory that is going to require most of the money. Most businesses have at least one of those. It's really rare that businesses don't have any of those.

If you don't have any of those, you're lucky because you have avoided some of the biggest expenses. Now, when you create this list and you add it up, then how many months is it going to take you to break even financially? So there's another item here that wasn't in the other worksheet. How many months will it take to get to break even and eventual profitability?

So you may underestimate. So just add double. So like, let's say you think it's three months. to get to breakeven. Give yourself six months and that way when you add this up, so you, whatever number you come up with when you created all this, you just multiply that number by the months that you estimate that you will take you to get to breakeven and that's how much money you need to raise.

So if you are just starting your [00:02:00] business, then it's the previous worksheet for Just launching plus this worksheet for running your business until it's breakeven. You need to add up the two worksheets. And if you're already running this business, then you really just need to do this one worksheet. After doing these worksheets, you'll come up with how much money you will need to raise.

And so in the next worksheet, we will look at fundraising strategies for exactly how to get that money.

