A useful estimate includes the business build, ongoing operations, the founder’s living needs, and enough contingency for delays and wrong assumptions.
Work through it
List setup costs
Include formation, initial design, equipment, deposits, and first implementation work.
Model monthly burn
Separate required recurring costs from tools that can wait.
Add personal runway
Treat personal expenses honestly when deciding how long you can continue.
Plan for uncertainty
Use a visible contingency rather than hiding optimism inside each estimate.
Common mistakes
- Ignoring founder time
- Forgetting annual renewals
- Assuming revenue arrives on schedule