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FINANCIAL FEASIBILITY TOTAL START UP CASH NEED The total start up cash that is need is $600,000 dollars. Our company received a loan from the bank for this long term debt. Our equipment that we will need is estimated to cost around $100,000 dollars. This equipment is the vans we will need to transport our clothing. Each van will be purchased for $20,000, so the first month I buy two, and then one in month three, four and five, due to the sales increase. These are the only fixed assets our company. We will also need computers since our companies customers will have to purchase their clothing through internet purchases. We will purchase computer the first month and then one each quarter having a total of four computers by the end of the year. Each computer will cost $800 dollars so by the end of the first year we will have spent $3200 dollars on computers. Our Advertising cost will be $500 dollars per month. Our company invests in advertising experiences since the first month totaling $6000 a year. Insurance is paid every six months which is $100 dollars so $200 a year. Our internet provides will be paid a salaries. Our company will have a web designer whose salary is $5,000 dollars per month (that’s the average salary of web developers). This is $60,000 a year in salaries. The clothes need to be delivered, so I will hire two delivery drivers at $2000 dollars a month. In month three we will hire one more due to p0rojected increase in sales. We will continue to hire one more in months four and five. This is a total of five delivery drivers
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