Ntrepreneurship class: (WK5) Start Up Budget

Note: Expect to take approximately (1-2) pages (doublespaced, 12-point font) to complete this assignment. Your work will be graded on completeness, clarity, originality, interest, grammar, spelling, and punctuation.
ATTENTION WRITER: Can you please fix/correct this business I have created or make it for legitimate. Iave included the previous essays for this assignment to look over. The professoras notes are at the bottom. Also, the blue underlined words in this document have links attached to them for help in this essayas requirements. Thank you in advance for all your efforts; they are truly appreciated.
Instructions:
This week you are learning about ways to finance a new business operation. Before you can head to your bank, credit union, friends, and/or rich relatives to apply for a loan or ask for their investment support, be sure that you understand your situation and your options. What are your startup costs? At what level of revenue will your business break even?
How much money do you REALLY need?
Of course, the answer depends on your business model and your chosen industry. However, a useful estimate based on a 2009 study conducted by the Ewing Marion Kauffman Foundation puts the average cost of starting a new business from scratch at just over $30,000.
Many small businesses, particularly freelance, online and home-based businesses come in a lot lower than this, often needing only a few thousand to get started.
But averages aside, what can you do to calculate your specific startup costs? Read on.
Understand the Types of Costs a Startup Will Incur
Before you do any estimating itas important to understand how startup costs are categorized. All startup costs (meaning the period before you start generating income) include two kinds of spending: expenses and assets.
1. Expenses a These are the costs for operations that occur during the startup phase, although they will continue throughout the life of the business. Startup expenses include deductible items such as travel, payroll, rent, office supplies, marketing materials, etc. Expenses also include initial organizational costs like legal fees, state incorporation fees, etc. You can write off up to $5,000 in business startup costs and another $5,000 in organizational expenses in the year that you start a business.
2. Assets a Also known as capital expenses or expenditures, these are the one-time costs of buying assets such as inventory, property, vehicles, or equipment as well as making upfront payments for security deposits. These startup assets donat usually qualify for deduction, however, some can be written off through depreciation at tax time.
You can read more about the difference between these two and why itas important to keep good expense records in SBAas Small Business Expenses and Tax Deduction Guide.
Define What You Need to Spend Money On
To estimate your startup costs, start by creating two lists a one for your startup expenses and one for your assets. Your list should be informed by the aspects of your business that will have costs associated during the startup phase, such as facility improvements or the equipment and inventory you need. But donat forget to consider items such as brochures, business cards, and website development costs or any security deposits you need to make. Do you need the help of a consultant, tax advisor or lawyer to help you get started?
Next, categorize these items as essential or optional a do you really need to spend money on these before you start making any kind of income?
Assign Costs
Now we come to crunch time a assigning costs to your startup a?to doa? list. This process is always going to be a best guess, but be realistic and use past experience, research, and advice from other entrepreneurs to guide your cost estimates. Organizations such as SCORE and your local Small Business Development Center can provide free and valuable advice about how to calculate your startup costs.
If you use a smartphone, another option that you might find useful is the SBA Mobile App, which includes a handy tool for calculating startup costs.
Whatever you do, donat underestimate your costs, or try to force your costs to fit the amount of money you have available. If the costs are too high, consider another approach to starting a business.
a? Could you run a home-based business?
a? Instead of buying inventory upfront could you have manufacturers drop ship?
a? Could you subcontract rather than hire employees?
a? What about buying surplus office equipment and furniture from the government at or below cost?

YOUR ASSIGNMENT FOR THIS WEEK

Your assignment this week is to prepare a start-up budget for your new business and a projected budget for 1 months worth of typical revenue (your income) and expenses. Based on the information above, you will need to consider: location (your home, rent a place, buy a place, build a place); other things you need like computers, equipment, inventory); and, of course, operating expenses (salaries, rent, insurance, utilities, advertising, etc.). These two budgets are due by Sunday evening in Dropbox 5. Use either Excel or a Word Document to present your budgets. I realize that you will be estimating (even guessing) on some of these figures. Research online to determine costs of rent, equipment, etc. as best you can. In a real-world scenario, the bank will ask you how you determined your numbers when creating this document. The more you show diligence in researching accurate numbers, the greater your chance of obtaining financing.

Note: reference our text book:
Bryd & Moegginson. (2013). Small Business Management; An Entrepreneuras Guidebook 7th ed. McGraw-Hill, Irwin. Print.