How to Start a Small Business: From First Evidence to First Review
MyBreakEven | Published 5 November 2026 | Original fictional USD case
Edit the yellow fields, then print or save a completed copy. This file does not automatically calculate, store or submit answers.
| Checkpoint | Required evidence | Owner / date | Decision |
|---|---|---|---|
| Customer | Interview notes and paid pilot | Enter owner | Continue / revise |
| Unit economics | 250 price less 100 job costs | Enter owner | 150 contribution |
| Initial funding | 6500 need, 4500 committed | Before launch | Resolve 2000 gap |
| Local setup | Agency checks for actual activity | Before trading | Record completion |
| First review | Actual cash, hours, invoices | After month one | Compare with archived plan |
Your case
Business / period / evidence source / reviewer / decision / next review date
| Checkpoint | Required evidence | Owner / date | Decision |
|---|---|---|---|
| Customer | Enter here | Enter here | Enter here |
| Unit economics | Enter here | Enter here | Enter here |
| Initial funding | Enter here | Enter here | Enter here |
| Local setup | Enter here | Enter here | Enter here |
| First review | Enter here | Enter here | Enter here |
Calculation and decision controls
Define the first customer and the smallest useful offer
Describe who buys, the outcome they want, the alternative they use and the scope you can deliver consistently. Interview likely buyers and compare local alternatives. A large market estimate is not a list of customers who will buy from you. Keep confirmed orders, customer interest and assumptions in separate categories.
Test price and scope together. Record the time and cash required to deliver a paid pilot, including revisions, travel, payment fees and customer support. Choose a spending ceiling and a date to decide whether to continue. Use the business-idea screening guide when you are still choosing between models.
Reconcile setup spending and early operating cash
| Cash requirement | Amount | Boundary |
|---|---|---|
| Tools and setup purchases | $2,400 | Paid before opening |
| Security deposit | $600 | Cash paid; not assumed expense |
| First two months operating shortfall | $2,000 | Receipts less payments after setup |
| Chosen cash cushion | $1,500 | Separate management assumption |
| Total initial funding need | $6,500 | No setup amounts counted twice |
| Owner cash committed | $4,500 | Confirmed available source |
| Unfunded difference | $2,000 | Resolve before commitments |
The funding need is $2,400 + $600 + $2,000 + $1,500 = $6,500. Subtracting $4,500 confirmed owner cash leaves $2,000 unresolved. That difference is not automatically an approved loan. Reduce or stage commitments, obtain documented funding or postpone launch until the dated schedule works. Include any financing fees, interest and repayments when a specific option is assessed.
The $2,000 shortfall means operating cash outflows exceed receipts by that amount during the two-month schedule, after excluding the separately listed setup payments. If your forecast already contains those setup payments, do not add them a second time. Budget household living costs separately and confirm what the owner must withdraw from the business.