How much should you raise or take loan after basic investments?

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 small businesses signup at:

Recommended by startups and small business as one of the most simple and helpful software ever built.

NB: Now we are issuing accounts within 2-3days of signup. And all who didn’t get an account in past should expect it in next 5 days. Else we might not have been been helpful to businesses in your domain or of your size or are completely not intent to serve to the specific domain. If you forgot your account or couldn’t use it in trial period, please do write back to me at However please make sure you search for it in your inbox. The email would be from

We’ve many users who we already sent their accounts but didn’t opened the email yet. So please make sure of it. Search in both inbox and junk or spam folder.

Photo Credit: HowardLake via Compfight cc

Leave a Reply

Your email address will not be published. Required fields are marked *