Planning Your Launch
Most startups fail not because of a bad idea, but because they run out of cash. Understanding your Burn Rate and Setup Capital is the first step toward building a sustainable venture.
Capital Categories
- Asset Acquisition: Computers, specialized tools, and initial inventory.
- Admin & Legal: Company registration, trademarking, and first permits.
- Marketing Launch: Brand identity, landing pages, and initial ad spend.
Runway Strategy
- Working Capital: Buffer for rent, utilities, and payroll before revenue starts.
- The 6-Month Rule: Professional investors recommend having at least 6 months of runway.
- Contingency: Always add 10-20% for the unexpected.
Strategic Advice
"A common mistake for first-time founders is overspending on furniture and office space. In the early days, prioritize capital for product development and customer acquisition."