The life stages of a business Having worked out a business plan complete with financial statements, potential business owners know approximately how much they'll need to finance each step of a business.
Seed money is used for ground-floor planning.
This is where you would do market research and create a business plan. Since you won't need much cash for organizing and planning the project, this step is typically self-funded. Start-up funds are used to get going in business. This total can vary greatly between companies. For example, a new restaurant would need a good deal of physical equipment and a location, either leased or purchased.