Guide to developing start-up costs:
1. Estimate Starting costs: Paid only once.
    Sample worksheet (159 KB)

2. Anticipate ongoing costs: Paid each month.
    Sample worksheet (102 KB)

3. Prepare:
• Capital budgets: Expansion, equipment, etc., often requiring special financing.
• Operating budgets: Advertising, maintenance, inventory, etc.
• Cash flow budgets: How much will be used to pay what and when. Credit analysts regard cash flow statements as superior tools for decisions relating to profitability and financial management.
• Cash flow budgets: How much will be used to pay what and when.
• Safety margin: Demonstrates how prepared you will be to begin.
    Sample worksheet (129 KB) — Start-up capital Requirement Estimate

Two Important Points:

• Make projections or forecasts for at least three years. This clearly portrays your business in its first years of life. It also supports your applications for financing and credit.

• BE SURE NOT TO OVERESTIMATE DEMAND AND INCOME.