Lesson 8 - Starting Cost & Getting Financed.pptx

Lesson 8 - Starting Cost & Getting Financed.pptx -...

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Start, Run & Grow Your Business Starting Costs & Getting Financed Lesson 8
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Start, Run & Grow Your Business Vocabulary: Refresher Property that a business owns, including cash and receivables, inventory, office equipment, plant and equipment, etc. Items or services that are paid for and deductible against taxable income. Common expenses are rent, salaries, advertising, travel. Direct Costs/COGS are only incurred once revenues are earned, so COGS won’t be part of start-up costs 2
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Start, Run & Grow Your Business Simple Lists Expenses before start: Any expenses incurred before your business is up and running. After the business opens, they are ongoing expenses, which are tracked in your Profit and Loss. Assets: You might make a separate list of the assets, which would also include other current assets (things you need to buy but don’t last long enough to be depreciated). Examples are coffee making equipment, packaging equipment, maybe chairs and tables as well. 3
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Start, Run & Grow Your Business Startup Expenses 4
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Start, Run & Grow Your Business Start-Up Expenses Specific start-up expenses: Legal expense for the business entity (discussed in Session 03: Business Basics, about choosing your legal business entity) Fixing-up expenses for the location (remodeling for offices, renovating workspace for a different use) Consulting perhaps, information gathering Purchasing computers (which can usually be recorded as an expense) Developing a website can be a start-up expense 5
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Start, Run & Grow Your Business Start-Up Expenses Normal expenses, but incurred before the start-up date: Sometimes you start paying rent before starting; to fix up, clean up, etc. Sometimes you start paying payroll before starting, because people are involved in setting up Sometimes you incur marketing expenses before starting 6
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Start, Run & Grow Your Business Startup Assets 7
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Start, Run & Grow Your Business Start-Up Assets Cash on hand: How much money do you need when you first open for business?
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