No. Review the actual enterprise’s capacity under the governing standard.
Use real operating evidence
Past revenue can inform the case without establishing every current condition. The acquisition price and seller’s assurances do not substitute for the required assessment.
Substantiality is proportional: the comparison is to the total cost of creating an operating enterprise of this kind, including premises, processing equipment, licensing and working capital. Buyers routinely budget the purchase price and forget everything around it, then find the remaining cash is thin exactly when the business needs equipment or a first payroll. Beyond closing, the enterprise needs working capital to operate through a season, and a purchase that consumes every available dollar weakens the answer to whether the business can be more than marginal. Match each claimed investment dollar to an enforceable purchase, lease, escrow, inventory, or setup obligation, then review refund conditions. The enterprise budget covers capital actually committed and at risk, plus operating costs; the household budget covers living expenses, travel, schooling and professional fees.