Project (1)
16 Feb

How to Calculate How Much You'll Need for Your Project?

Money may not grow on trees, but it still takes a lot of cash to get even the smallest projects up and running. Before you can open your business, hire employees, or start your own personal project, you need to know how much money you’ll need to do it. 

Here are the ways you can calculate how much money you’ll need for your project, whether it’s starting your own home-based business or launching an art show in the local community space. The Finance Hub is here to assist you in this matter, whether you need short-term funding or long-term funding. 

What Does Your Business Need?

Just like every project has different needs, you’ll need to think about what your business needs. Do you need new software? New furniture? A building of your own? What you choose will be dependent on a number of factors, including projected sales and whether or not you are planning on working alone or with employees.

Most importantly, whatever it is that you decide upon make sure that it is something that can scale as your business grows. If you intend to open up multiple stores, purchasing an actual building would be better than leasing one in most cases. 

On top of cost benefits, having ownership over all aspects of your operations allows for more flexibility when it comes time to change locations or expand into additional markets. In most cases though, small-business owners have to look for an Easy Finance Hub because they don’t have enough money set aside for bearing long-term project costs.

Do the Math

The amount of money you’ll need to complete your project depends on a few factors. The most important thing is time. Every hour you’re devoting to a project will probably require an equal amount of cash, so don’t take that lightly! 

But it’s not just about how much time you spend, but also how many hours per day (and per week and per month) you can devote to the task. It may be worth scaling back some of your other work if necessary; other things are often more replaceable than time spent working toward a goal that matters deeply to you. 

Finally, make sure you account for expenses related to your project. If you can’t live without cable TV or coffee from Starbucks every morning, include those costs in your budget. That way, when you factor in everything, there’s no margin for error. You know exactly how much money it takes to get everything done as quickly as possible.

Consider Starting Small

While some businesses are billion-dollar enterprises from day one, most start small and grow from there. If you’re just getting started, start small—figure out your budget limitations, what type of work can you do alone, and who can help you with any skills you lack. The more questions you answer early on, the better off your project will be. 

Once you have a solid understanding of how much it costs to run a single unit of your business, extrapolate that across thousands or millions. What was $500 when your company ran at 1 unit is going to turn into a lot more than $500 once scaled up across 10 units. 

Once you figure that math out, get in touch with an Easy Finance Hub before spending too much time strategizing how to scale before things even get started. Professionals will guide you better.

Optimize your ROI (Return on Investment)

ROI isn’t just about money, it’s about time. Time is money, after all. If you don’t have time or energy left at the end of a day to dedicate to your projects and interests, then you can’t be as successful as you could be with more resources. 

With that in mind, it makes sense to consider ROI in terms of hourly wage rather than actual cash outlay. For example, let’s say you work 40 hours per week; if you devote 40% of your working hours each week toward a project—either pursuing existing opportunities or creating new ones—then you are dedicating an hour for every $40 invested. 

This might seem like an inefficient use of time compared to punching in full-time (100%), but 100% employment means that other parts of your life take a backseat.

Find Funding Sources

Before starting out on an ambitious project such as launching a startup business or creating something new, take some time out to plan before going full throttle into action. 

Prepare as well as possible so that whatever happens during your initial launch and execution period doesn't hit you too hard. Better to be overprepared than underprepared.

There are many websites that allow you to find funding sources, however, when it comes to easy funding sources; The Finance Hub has no match in exceptional customer service and unmatched quality. 

Don't Wait For Perfect Timing

If you wait until everything is just right, you will be waiting a long time. Even if you’re facing a potential cash crunch, don’t put off starting your small business until you have more money or better timing. Financial setbacks are an almost inevitable part of being an entrepreneur and starting up when you have limited funds is one of them. 

If you have a great idea and can get it out there cheaply but quickly, go for it! The important thing is to start moving toward your goals in some way, shape or form. After all, getting started and failing fast beats not trying at all.

Conclusion

Calculating how much money you'll need for your project is a crucial step in the process of getting started. While there are several different ways to do this, we've outlined a few options that should help get you on the right track. This is where the Easy Finance Hub comes in handy; we're here to help you calculate how much money you'll need for your project, whether it's starting your own home-based business or launching an art show in the local community space.

 

For more information about business loans, business appraisal, development funding, invoice finance, please feel free to reach out to us by filling out our contact form!