The direct answer
Capital to arrange = payments before opening + required cash reserve.
A quote for equipment is not a complete opening budget. Neither is a multiple of monthly expenses. Start with the operating format and place each payment on a timeline.
1. List what must be paid before opening
Build the list around actual commitments. Keep refundable deposits, equipment and opening stock separate because their later accounting treatment differs.
| Payment group | What to record | Common omission |
|---|---|---|
| Premises and setup | Fit-out, installation, signage and pre-opening work | Making the site usable, not only obtaining the lease |
| Equipment and systems | Purchase, delivery, installation and setup | A quote may exclude shipping or commissioning |
| Deposits and prepaid items | Lease and utility deposits; advance premiums | A refundable deposit still consumes cash |
| Opening stock | Initial inventory and supplies | Avoid subtracting this cash payment twice |
| Preparation | Recruitment, training, launch and local requirements | Paid preparation happens before the first sale |
2. Model the cash gap after opening
Estimate receipts and payments month by month. A business that reaches a healthy mature month can still run out of cash on the way there. Show a realistic ramp, required paid labor and the timing of each payment.
Set a minimum cash balance, then add the deepest cumulative cash deficit. If cash remains negative every mature month, a larger reserve only postpones the problem.
3. Check the budget before using it
- Every payment appears once.
- The owner’s required work is paid or explicitly valued.
- Taxes, debt payments and working capital are included where applicable, or the exclusion is visible.
- Deposits and stock are kept separate from operating expenses.
- The cash reserve has a stated horizon and minimum balance.
- Quotes, observed periods and location are recorded.
This on-page checklist is temporary and is not submitted.
4. Trace a worked example
The Restaurant × Texas prototype shows opening payments, a separate reserve, monthly cash flow and a payback calculation using one set of assumptions. Its numbers illustrate the method; they are not local evidence.
Trace the restaurant example →Method and next step
The SBA planning resource provides a starting point for identifying opening expenses and recurring costs. Our reserve calculation then follows the stated monthly cash timeline.
Now test the sales threshold.
A funded opening still needs an operating model that works.
Calculate break-even sales →