|
A. Estimate the first
year's income
|
|
1. Total
estimated sales revenue for the first year
|
|
2. Total
estimated income from other sources
|
|
3. Total
first year's income
|
|
|
B. Estimate the first
year's expenses
|
|
1. Total
estimated monthly costs X 12 months
|
|
2. Total
one-time start up costs
|
|
3. Total
first year's expenses (line 1+2)
|
|
4. First
year's expenses X 150%
|
|
|
C. Subtract your
first year's expenses X 150% from the first year's projected
income.
|
|
1. Figure
from line A3
- Minus
|
|
2. Figure
from line B4
|
|
|
Total Capital Needs
|
$
|
This figure
(if negative) will reflect the amount of capital you will need
in the first year of operation.
If this figure
is positive, it still may mean that you will need capital
in the first months of establishing the business, depending
upon how long it will take for sales and income to be received
into the business. (Remember, bankers and investors will expect
you to fund a portion of your business costs.)
|
|
D. Subtract the amount
of available capital you have to invest in the business from
the total of section C.
|
|
Capital
needed in the first year of business (total of C.)
- Minus
|
|
Capital
you have available in the first year
|
|
|
Total financing needed
the first year
|
$
|
