LAUNCH & FUNDING

How much funding does launch require?

Add the cash paid before opening, then find the deepest monthly operating cash deficit. Keep a chosen reserve intact and compare the required funding with what is available.

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Your planning assumptions

Start with the example, then change the inputs.

CurrencyUse one currency for every amount. Enter 5,000 for five thousand; changing the currency label does not convert your inputs.

Equipment paid at launchCash paid before opening; exclude later financed payments counted in the schedule.

Setup and launch costsFor example, permits, professional fees and launch marketing.

Deposits paid at launchCash tied up even when it remains an asset on the balance sheet.

Opening inventoryInitial stock paid at launch. Later replenishment belongs in monthly payments.

Minimum cash reserveCash to retain at every modeled month end; your assumption.

Funding available at launchCommitted cash available before paying opening costs.

Monthly cash plan

Enter receipts and payments for each month after launch, in $. Keep months with zero cash flows. Month 0 is the opening position; it is calculated from the launch costs above.

Month 1

Month 1 receipts ($)Cash collected during this month, even if the sale was made earlier. Enter 0 in a month with no collections.

Month 1 payments ($)Cash paid during this month. Exclude opening costs already entered above.

Month 2

Month 2 receipts ($)Cash collected during this month, even if the sale was made earlier. Enter 0 in a month with no collections.

Month 2 payments ($)Cash paid during this month. Exclude opening costs already entered above.

Month 3

Month 3 receipts ($)Cash collected during this month, even if the sale was made earlier. Enter 0 in a month with no collections.

Month 3 payments ($)Cash paid during this month. Exclude opening costs already entered above.

Month 4

Month 4 receipts ($)Cash collected during this month, even if the sale was made earlier. Enter 0 in a month with no collections.

Month 4 payments ($)Cash paid during this month. Exclude opening costs already entered above.

Month 5

Month 5 receipts ($)Cash collected during this month, even if the sale was made earlier. Enter 0 in a month with no collections.

Month 5 payments ($)Cash paid during this month. Exclude opening costs already entered above.

Month 6

Month 6 receipts ($)Cash collected during this month, even if the sale was made earlier. Enter 0 in a month with no collections.

Month 6 payments ($)Cash paid during this month. Exclude opening costs already entered above.

6 months. Add up to 60 months; keep at least one.

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Methodology

Fund the deepest cash trough, not just the last month.

Opening uses include equipment, setup, deposits and initial inventory. The monthly schedule then tracks receipts less payments. The operating buffer is the largest cumulative deficit reached anywhere in that schedule, including the zero balance before operations start.

Required funding is opening uses plus that buffer plus the reserve. Compare it with cash available at launch to find an additional funding gap. This approach prevents later receipts from hiding an earlier shortfall, but it only protects the modeled month ends.

Opening uses = equipment + setup + deposits + initial inventory

Operating buffer = max(0, −lowest cumulative operating cash flow)

Required funding = opening uses + operating buffer + reserve

Funding gap = max(0, required funding − available funding)

Illustrative worked example

The opening uses total $40,000. Six monthly net cash flows are −$10,000, −$7,000, −$3,000, $3,000, $5,000 and $7,000. Their cumulative trough is −$20,000 at month 3. A $10,000 reserve therefore requires $70,000 at launch; $50,000 available leaves a $20,000 gap.

Worked example values
Measure	Illustrative result
Opening cash uses	$40,000
Operating buffer	$20,000
Reserve	$10,000
Total funding required	$70,000

Assumptions and limits

Use cash payment timing, not depreciation or accounting expense timing. Avoid counting opening inventory or deposits twice.
Funding is treated as fully available at launch. Loans arriving later need a separate dated financing schedule; include their debt service in payments.
The calculator does not estimate startup costs, sales, taxes or an appropriate reserve for your business. Add contingencies to the relevant cash inputs.
A positive ending cash balance can coexist with an earlier funding shortfall. Check the lowest month and payment dates.

Should the budget include a full year of expenses?

Include launch, the build-up in collections and known later cash needs. The important amount is the largest cumulative shortfall along the way, even if the final month has surplus cash. The tool accepts 1–60 monthly rows; its six-month starting example is not a recommended horizon.

Primary methodology references

U.S. SBA: calculate startup costs. Separate one-time and monthly costs and plan the funding need. The peak-deficit and reserve calculation here is a cash-budget convention, not an SBA cost estimate.

Worked examples explain the calculation, not expected business results.

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