Let's put a plan to your ambition
A practical launch funding guide that separates setup costs from runway, working capital and contingency.
A laptop, logo and website can make a business feel real. They’re not what keeps it alive.
The real start-up cost is the cash required to open, operate and survive until the business can pay for itself.
Many founders calculate the cost to start and forget the cost to keep going. That’s how a business can launch successfully and still run out of money.
A laptop, logo and website can make a business feel real. They’re not what keeps it alive.
The real start-up cost is the cash required to open, operate and survive until the business can pay for itself.
Many founders calculate the cost to start and forget the cost to keep going. That’s how a business can launch successfully and still run out of money.
Image Caption
Split the funding into four buckets
Bucket one is setup costs.
These are the costs before opening day: registrations, advice, branding, website, fit-out, equipment, deposits, stock, insurance, software setup, licences and launch marketing.
Bucket two is operating burn.
This is the cash the business will spend each month while revenue is still building: rent, wages, founder drawings, software, marketing, loan payments, utilities, insurance, contractor costs and professional fees.
Bucket three is working capital.
This is the cash trapped in timing. You may need to buy stock before selling it. Pay wages before customers pay you. Pay GST or suppliers before cash comes back in. Growth and launch both create timing gaps.
Bucket four is contingency.
Something will cost more, take longer or arrive later than planned.
Bucket one is setup costs.
These are the costs before opening day: registrations, advice, branding, website, fit-out, equipment, deposits, stock, insurance, software setup, licences and launch marketing.
Bucket two is operating burn.
This is the cash the business will spend each month while revenue is still building: rent, wages, founder drawings, software, marketing, loan payments, utilities, insurance, contractor costs and professional fees.
Bucket three is working capital.
This is the cash trapped in timing. You may need to buy stock before selling it. Pay wages before customers pay you. Pay GST or suppliers before cash comes back in. Growth and launch both create timing gaps.
Bucket four is contingency.
Something will cost more, take longer or arrive later than planned.
The one bit of gold
The cost to open is not the same as the cost to reach break-even (read my break-even blog).
A cafe may spend money on fit-out and equipment before opening, but it also needs cash for wages, food, rent and marketing while customers discover it. A consultant may have low setup costs, but if clients pay 30 or 60 days after work is delivered, the founder still needs runway.
A founder who says, "I only need $20,000 to start" may really mean, "I need $20,000 to launch” and might be forgetting to plan for the six months of personal and business runway.
The cost to open is not the same as the cost to reach break-even (read my break-even blog).
A cafe may spend money on fit-out and equipment before opening, but it also needs cash for wages, food, rent and marketing while customers discover it. A consultant may have low setup costs, but if clients pay 30 or 60 days after work is delivered, the founder still needs runway.
A founder who says, "I only need $20,000 to start" may really mean, "I need $20,000 to launch” and might be forgetting to plan for the six months of personal and business runway.
Build three scenarios
Don’t build one perfect launch budget. Build three.
The lean case assumes you spend less, launch simply and revenue begins sooner.
The base case is your realistic plan.
The delayed case assumes the website takes longer, customers take longer to convert, staff training takes longer, approvals take longer and the first version of the offer needs adjustment.
The delayed case isn’t negativity, it’s contingency planning.
Include the founder's life
A business doesn’t exist separately from the founder's mortgage, rent, groceries, childcare and personal obligations. If the founder needs to draw money from the business immediately, that’s part of the runway calculation.
Watch GST and tax assumptions
New founders often look at gross receipts and forget that some cash belongs to the ATO. If you are registered for GST, not all the money in the account is yours. If the business is profitable, tax will eventually arrive. If you hire, Workcover, PAYG withholding and super enter the picture. You then grow, great, here come’s payroll tax.
Build tax reserves into the plan early. It’s much easier than trying to find the money later.
Don’t build one perfect launch budget. Build three.
The lean case assumes you spend less, launch simply and revenue begins sooner.
The base case is your realistic plan.
The delayed case assumes the website takes longer, customers take longer to convert, staff training takes longer, approvals take longer and the first version of the offer needs adjustment.
The delayed case isn’t negativity, it’s contingency planning.
Include the founder's life
A business doesn’t exist separately from the founder's mortgage, rent, groceries, childcare and personal obligations. If the founder needs to draw money from the business immediately, that’s part of the runway calculation.
Watch GST and tax assumptions
New founders often look at gross receipts and forget that some cash belongs to the ATO. If you are registered for GST, not all the money in the account is yours. If the business is profitable, tax will eventually arrive. If you hire, Workcover, PAYG withholding and super enter the picture. You then grow, great, here come’s payroll tax.
Build tax reserves into the plan early. It’s much easier than trying to find the money later.
What to do this week
What to do this week
Download the start-up cost and runway calculator. Enter setup costs first. Then add monthly operating burn. Then ask the uncomfortable question: "How many months until this business can pay for itself if sales take longer than planned?" That answer is your real launch number. Email me the results and let’s catch up to discuss.
Website disclaimer note: This article provides general information only and does not take into account your circumstances. It is not a substitute for tax, legal, financial, employment, cyber security or other professional advice.
Download the start-up cost and runway calculator. Enter setup costs first. Then add monthly operating burn. Then ask the uncomfortable question: "How many months until this business can pay for itself if sales take longer than planned?" That answer is your real launch number. Email me the results and let’s catch up to discuss.
Website disclaimer note: This article provides general information only and does not take into account your circumstances. It is not a substitute for tax, legal, financial, employment, cyber security or other professional advice.
Share this post
Got questions?
Maybe it’s time for a
macchiato with Chris.
Got questions?Maybe it’s time for a macchiato with Chris.
Got questions?
Maybe it’s time for a
macchiato with Chris.
Ready to kick-start your
self-made journey?
© 2026 Denari Advisory. Liability limited by a Scheme approved under Professional Standards Legislation.
Strategy and Site by Touching Base
Ready to kick-start your self-made journey?
© 2026 Denari Advisory. Liability limited by a Scheme approved under Professional Standards Legislation.
Strategy and Site by Touching Base
Ready to kick-start your
self-made journey?
© 2026 Denari Advisory. Liability limited by a Scheme approved under Professional Standards Legislation.
Strategy and Site by Touching Base
