My answer.... never start a business you don't have cash to start.
Here is how I do things.... I have as much money to start what ever I want but I set rules for myself. My current business I set a $175 budget to start. I bought a washer & dryer for $150, sold it for $350. Now I used the combined amounts to buy 3 more sets and continued to do that. This year I am set to make $100,000 profit if I choose to work that much (40 hour week). But keep in mind, if I would have wanted to start this business with $20,000.... I could have, but why? I have no business credit cards, hell, I've never even had a personal credit card.
But I'm sure all the people who think they know better will be on to tell me I'm wrong even though I wake up every day with a smile and never a worry and that's how I sleep at night. Remember me in 2 years when you might not be getting much sleep at night......