Startup Financial Readiness Checker
A quick audit that scores your financial readiness to start a small business.
Answer the following to assess your financial readiness for entrepreneurship.
An emergency fund covering 6 months protects against income loss.
A DTI under 36 % indicates manageable debt load.
High‑interest debt increases financial risk.
Having funds for startup costs avoids borrowing.
A 6‑month runway provides a safety cushion.
Early revenue reduces financial strain.
Having a payoff plan reduces future risk.
You lack critical financial safeguards; consider postponing.
What to fix (6)
Emergency fund covers 6 months of expenses
CriticalWithout a 6‑month emergency fund, you risk insolvency if income stops.
Fix: Save additional liquid assets until you reach 6 months of expenses.
Runway of at least 6 months
CriticalA 6‑month runway protects against revenue delays.
Fix: Increase savings or reduce expenses to extend runway.
Debt‑to‑income ratio below 36 %
MajorHigh DTI strains cash flow and limits borrowing.
Fix: Reduce debt or increase income to lower DTI.
Liquid savings cover startup costs
MajorWithout funds for startup costs, you may need high‑interest loans.
Fix: Allocate savings or secure low‑interest funding.
Revenue expected within 6 months
MajorEarly revenue reduces financial pressure.
Fix: Develop a realistic go‑to‑market plan.
Plan to pay off high‑interest debt
MinorHaving a payoff plan reduces future risk.
Fix: Create a debt repayment schedule.