©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Developing Budgets Develop complete chart of accounts Research cost for each account Develop a budget book Avoid straight line estimating Forecast sales volume Relate to sales and inventory needed Project best case/worst case scenarios Project break-even budget 21.1 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Start-Up Costs Make a list of potential start-up costs Recognize difference between ongoing expense and one-time start-up cost Determine if landlord is willing to absorb some start-up costs Weigh leasing equipment vs. purchase Consider inventory on consignment 21.2 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Start-Up Costs What type of signage will be required? Are there any applicable city codes? What types of supplies will be needed (such as cleaning, office, shipping)? What type of training is necessary before opening for business? What types of government business licenses will be required? 21.3 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Start-Up Costs Where will the business be located? What size will it be? What does the office or retail space look like? What type of walls and fixtures does it have? What type of equipment will be needed? Computers? Furniture? Carpet? Copy machine? Shelving? How much opening inventory will the business need? How will it be paid for? What types of deposits will be needed for telephone, utilities, rent (first and last month)? 21.4 © 2004 Ewing Marion Kauffman Foundation