List of all your projected expend
It’s very important to determine how much cash your new business will need to open and operate smoothly. Therefore, you must know how much capital you will need in order to cover all business expenses until you will reach the break-even point. Note that your business should have enough cash to cover all projected expenses for at least six months.
In this assignment, you will create a list of all your projected expenditures. The following steps can help you get started:
First Step – List of all needed assets (equipment, furniture, fixtures, supplies, software) and people needed to start and operate your business
Second Step – List startup costs for inventory, marketing, sales, permits, needed market research, licenses, certificates, initial investment, legal fees, or professional charges
Third Step – Compute your monthly (min. 6 months) fixed expanses such as rent, insurance, utilities, phone, lease, health insurance, loan payments, taxes, Internet, shipping and other services,
Last Step – Estimate your salary, employees or hired contractors
This assignment will also help you to develop some sections of your Business Plan (Part II: Start Up and Running Costs sections).
Please note, the start up costs will depend on the type of the business and industry that you are planning to enter.
Therefore, the amount of projected expenses in the various categories may also very across industries.
Submission Format:
Include a table with all projected monthly expenditures for at least 6 months
Briefly explain your Start Up Costs items
Submit your assignment at the end of Unit Three (see the syllabus).
Minimum written page requirement is 2 pages (not to include tables).
Projected Start Up Costs Sample
Business Start Up Costs/ Month
January , 2017
Assets:
Cash
$11,000
Inventory
$5,600.00
Equipment
$2,800.00
Auto
$15,000.00
Other assets
$0.00
Subtotal
$34,400
Expenses:
Rent
$1,500.00
Lease deposit
$1,700.00
Marketing
$2,500.00
Legal fees
$700.00
Consulting fees
$500.00
Miscellaneous
$1,100.00
Total Start Up Costs
$8,000.00
Financing (Owner’s Equity and Liabilities)
Owner Initial Investment
$12,400.00
External Investment
$3,000.00
Total Equity Financing
$15,400.00
Bank Loan
$9,000.00
Line of Credit
$2,000.00
Total Liabilities
$11,000.00
Total Equity Financing and Liabilities
$34,400.00
