Startup Expenses

with inadequate capital reser v to avoiding this pitfall is to adopt a rigorous approach to your resea r planning. Our Startup Expenses worksheet will lead you through the process.<br><br> EXPENSES - Begin by estimating expenses. What will it cost you t o business up and running? The key to accuracy here is attention to d each category of expense, draw up a list of everything you will nee d This will include both tangible assets (for example, equipment, inve n services (for example, remodeling, insurance).<br><br> Then determine wh e purchase these goods or services. Research more than one vendo r comparison shop. Do not look at price alone; terms of payment, de reliability, and service are also important.<br><br> CONTINGENCIES - Add a reserve for contingencies. Be sure to e x narrative how you decided on the amount you are putting into this r e WORKING CAPITAL - You cannot open with an empty bank accou n a cash cushion to meet expenses while the business gets going. E v should do a 12-month cash flow projection.<br><br> This is where you will w o estimate of working capital needs. For now, either leave this line bl a your best rough guess. After you have done your cash flow, you ca n and enter the carefully researched figure.<br><br> SOURCES - Now that you have estimated how much capital will be start, you should turn your attention to the top part of this workshee t amounts you will put in yourself, how much will be injected by partn e investors, and how much will be supplied by borrowing. COLLATERAL - If you will be using this plan to support a bank loan the section near the bottom to show what assets are offered as coll a secure the loan, and give your estimate of the value of these items. to offer some proof of your estimates of collateral values.<br><br> Pre-opening salaries - Other - Total Location and Admin Expenses - $ Opening Inventory Category 1 - $ Category 2 - Category 3 - Category 4 - Category 5 - Total Inventory - $ Advertising and Promotional Expenses A dvertising - $ Signage - Printing - Travel/entertainment - Other/additional categories - Total Advertising/Promotional Expenses - $ Other Expenses Other expense 1 - $ Other expense 2 - Total Other Expenses - $ Reserve for Contingencies - $ Working Capital - $ Summar y Statement Sources of Capital Owners' and other investments - $ Bank loans - Other loans - Total Source of Funds - $ Startup Expenses Buildings/real estate - $ Leasehold improvements - Capital equipmen t - Location/administration expenses - Opening inventor y - A dvertising/promotional expenses - Other expenses - Contingency fund - Working capital - Total Startup Expenses - $ Security and Collateral for Loan Proposal Collateral for Loans V alueDescription Real estate $ 120,000 Residence at Main St., Seattle, WA Other collateral - Other collateral - Other collateral - Owners Your name here Other owner Other owner Loan Guarantors (other than owners) Loan guarantor 1 Loan guarantor 2 Loan guarantor 3 o n to use as reference later.To delete e xt box and then press the DELETE u siness has underestimated the costs, i nadequate capital reserves. The key s approach to your research and y ou through the process. e s.<br><br> What will it cost you to get your u racy here is attention to detail. For f everything you will need to purchase. x ample, equipment, inventory) and ce).<br><br> Then determine where you might c h more than one vendor; i.e.: n e; terms of payment, delivery, t ingencies. Be sure to explain in your y ou are putting into this reserve. ith an empty bank account.<br><br> You need e business gets going. Eventually you . This is where you will work out your w , either leave this line blank or put in e your cash flow, you can come back how much capital will be needed to t op part of this worksheet.<br><br> Enter the h will be injected by partners or b y borrowing. a n to support a bank loan request, use a ssets are offered as collateral to the value of these items. Be prepared l lateral values.<br><br>

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