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You've heard the statistic before, 80% of businesses fail in the first 3 years. It may be closer to the truth to tell you that each year, an amazing 320,000 new businesses are started - while 300,000 exit the market place.  

Business exit the market for many and varied reasons - not just failure - although failure does represent the majority of the 300,000.

As an entrepreneur, you've got optimism on your side.

You wouldn't be starting your business if you thought you'd be part of the 80%, but, chances are - you probably won't be turning a profit on day one and maybe not even in your entire first year.

Sobering thought isn't it?

Starting a business is one of the most challenging and rewarding undertakings you can ever embark on, but if you're starting out under-capitalised you may not see your dreams become a reality for long. At start-up you'll need to make sure you have enough capital to see you through the initial phase of your business. So, now is the time to step back from the excitement of your big idea and take a good hard look at your finances, for both your personal and business requirements.

The more pragmatic you can be now - the greater chance you have of lasting success.

Even if you don't know how much money you'll be earning (if that's something you CAN accurately predict, then your time might be better spent at the Racetrack) you should by now know from the process of creating your business plan, how much it's going to cost to sell your product or deliver your service and what your expected overheads for a 12 month period will be. From knowing your costs and overheads you can calculate your break-even point and set yourself a simple budget from there.

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