The amount alone does not settle substantiality, risk, source, path or the enterprise requirements.
Explain the transaction’s real use
Identify where the funds go and the governing conditions. There is no universal minimum amount that cures missing authority or an unsupported operating plan.
List investment capital and ordinary business operating costs apart from government filing fees, legal and document-preparation services, and family or travel expenses. Within the business ledger, separate the initial franchise payment, royalties, lease deposits, equipment, inventory, insurance, licences, and working capital; mark whether each amount is refundable, contingent, spent, or irrevocably committed. Substantiality is measured in proportion to the cost of acquiring the particular business, so a fully funded purchase of a modest operating business can qualify while a small fraction of an expensive one may not. An investor who pays the full price but arrives with no reserve may be told the investment is insufficient to ensure the business will operate, while one whose committed funds cover the price and a realistic reserve has met the test comfortably. Keep household expenses separate and review whether the revised funding plan still supports a credible enterprise rather than assuming the purchase price covers everything. Substantiality is assessed proportionally against the total cost of buying or creating the enterprise: a modest sum can be substantial for a small service business and plainly insufficient for a manufacturing acquisition.