When deciding how much funding your business is going to need we often have a nice round number in our heads — $10K, $100K, or $1M. These numbers sound and look good, but are more often than not what the business needs or what is in the best interest of the business.

In this post we talk about why it's important to have a better number when you're looking for funding, how to calculate your business expenses, and how to use that number to choose an appropriate amount of funding. Let's dive in!

📌 Pro-tip: If you came here for the Skip expenses worksheet, here it is.

Here's Why You Should Rethink How Much Funding You Need

Most businesses fail — around 20% within the first year and around 50% within the first 5 years. Having enough funding is key to this, but most business owners when we ask, "How much funding do you need?" and then follow-up with "Why that amount?" they don't have a good answer.