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When starting a business, it's essential to determine your budgetary needs as each business varies in cash requirements at different development stages. There is no universal method for estimating startup costs; some businesses can begin on a smaller budget while others may need significant investment for inventory or equipment. Additional considerations include costs for acquiring or renovating a building and purchasing equipment. To assess the necessary capital, estimate business costs for the initial months, distinguishing between one-time expenses (like incorporation fees or signage) and recurring costs (such as utilities, inventory, and insurance). A realistic startup budget should only include essential items necessary for launching the business.