6-point checklist to answer the age old business question 'How Much Money Do I Need?'

Are you ready to head off into a new venture that will allow you to buy and sell Mr. William Gates, III? Hold on a second. This 6-point checklist is for you. It should help answer one of the most crucial questions you can ask of a business or project start-up: 'How much money will I need?"

Rough estimates are wonderful for hand grenades and your aunt's pineapple upside-down cake recipes, but potential investors are notorious for using calculators. You need to be as precise as possible when gauging the money you need to take your business or project all the way. If you underestimate it, your new venture will litter the full-to-bursting business graveyard, but if you overestimate the costs, no one will be willing to fund you.

So, your numbers have to be as accurate as you can make them. And, in the interest of accuracy, we at Implex.net have a list of 7 points that can help you bring in numbers that are as close as possible to real world numbers. Count to seven with us:

1. Use the experience of those who are already there. Unless you created anti-gravity boots, there is someone in your field already making money. You may not be able to talk frankly with those people in your area, but for the price of a long distance telephone call, plane ride or Google research you can find out what their costs are.
2. Don't forget the trade associations. These groups are invaluable for finding out industry-wide numbers, events and sales levels.
3. Have the suppliers supply you with information. Whether you are approaching Implex.net about QwikCast™ video-streaming or Joe's Janitorial about mops and buckets, suppliers often want to give you the most accurate quotes they can because you are a potential customer. And, feel free to compare pricing.
4. SCORE one for you business. The Service Corps of Retired Executives, or SCORE, which pairs retired business people with those currently in business, is a valuable resource for anyone looking to crunch numbers. And, if your SCORE partner adviser was once in your business -- goal!
5. Read all about it. Go to amazon.com or your local bookstore and read up on your industry. Don't stop there; go to trade journals, business magazines and any printed or cyber material that is relevant. Get familiar with its cycles, its booms and busts and use that information to get an historical perspective of what expenses and revenues your business can expect to generate.
6. Hire a consultant. If your budget can take the hit, the cost may prove to pay for itself later down the line. A qualified business consultant can offer excellent advice about start-up costs--and even do a lot of the research for you. A consultant can also help you organize your own research into useful financial projections and scenarios.

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