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Business planning????

Aug 30, 2007 by krisy | Posted in Other - Business & Finance

I am review a business plan for the first time and am confused on how to figure the following:

Estimate how much start-up capital you will need to begin your business.

How will you be customary this needed capital?

Revenues covering all costs, both fixed and variable.

Estimate your revenues and expenses for 10 years.

Any analysis would help so much. Thanks!

These are big questions concerning your business plan, and I suggest you acquire one of the many business plan guides that are available. You will need a guide to a start up business plan.

To alter b transfer a brief stab at your questions;

To estimate needed start up capital, you itemize all expences you will incur to start up, decide approximate cost and add them up. Include advertising, marketing, etc.

How to obrtain the capital -- once you have a complete business plan in pinpoint, you can approach potential investors or you can take the business plan to a bank or other financial istitutuion and ask about a bank loan. (Or you can borrow from household and friends. It's advisable to have a written agreement if you go this way, to avoid confusion and bad feelings later on.)

Revenues covering all costs ... not sure-fire what you mean by this. There is a formula for determining how much you need to charge per unit to break even and to make a profit.

Estimate reveues and expences for ten years .... you fraudulent this somewhat on your market research, your competition, the amount of growth you anticipate your business will experience over five to ten years. As near as I have ever figured it, there's no way to understand this for sure. At best, you are giving an educated guess.