Do not assume every preparation expense counts. Identify its actual purpose and have the payment structure assessed.
Separate business capital and service charges
Clarify accounting, commercial and immigration scope and current official fees. A larger total expenditure does not establish all E-2 requirements.
Substantiality is judged relative to the actual cost of the specific business rather than a fixed dollar figure, and money merely under discussion, money committed under signed terms, and money already spent should be kept clearly distinct. Add the equipment and vehicles purchased, the leasehold or premises costs, initial inventory and tools, training costs the franchisee bears, and working capital committed to the business. The total plan may include purchase price, leasehold improvements, inventory, equipment, professional services, insurance, licensing, application charges, and family travel. 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. Where the marginality analysis depends on adding attended services, contracts or equipment, that additional capital is part of the plan and part of the investment, and it should be budgeted rather than hoped for from first-year profits.