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How much capital do you really need to get your company up and running with money left over to operate?Answering that question is one reason a solid business plan is so important.

If you raise too little, you risk running out of money before your business gets off the ground.Keep in mind that if your projections show that you’ll have positive cash flow in a year, that future cash could be available to fuel your growth, in addition to any start-up capital raised from investors.

When raising money, here are some rules I’ve learned from experience with my own companies:

1.

Authors: Michael L. F. Slavin

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