How to Estimate Your Business Startup Costs
Planning the financial foundation of a new business is the first step toward long-term survival. Most startups fail not because of a bad idea, but due to a lack of **Capital Reserves**. When calculating your costs, it is important to distinguish between **Capital Expenditures (CapEx)** and **Operating Expenses (OpEx)**.
**Launch Costs** are one-time fees required to get your doors open—this includes your website, initial inventory, and legal setup. **Monthly Burn Rate** is the amount of cash you spend each month to keep the business running. Financial experts typically recommend having a **6 to 12-month runway** of operating costs in the bank before launching to account for the time it takes to reach profitability.
Our calculator helps you visualize this "Runway" so you can seek appropriate funding or adjust your business model to match your available budget.