Action Step 38: Attach Price Tags to Starting Your Business Look around and list items you use every day List expenditures for things you cannot see Insurance, Rent, Utilities, Taxes, Legal & Accounting Write down how much each expense will cost Use the start-up worksheets as guides to develop your start up costs Refine the numbers as you go so you will have an accurate representation of start-up costs for your Business Plan

Action Step 39: Preparing for Surprises: Brainstorm a list of surprises that could cost you time, money or threaten your survival Ask business owners about their surprises and how they handled them Talk to vendors, suppliers, customers & insurance brokers Estimate your total potential extra costs Decide how you will cover unforeseen expenses How much money should you set aside for unexpected events?

Action Step 40: Discovering Costs and Developing a Fair Price: Review chapter 5 action steps and revise if needed Use your answers to help develop your pricing strategy Gather information from various sources to develop a list of activities and the costs you will incur Determine actual expenses involved with each cost and activity Price your product using the primary method for your industry Consider how you want customers to view your product Discuss major pricing issues you need to deal with Complete a break-even analysis

Action Step 41: Complete Seasonality Scenario and a Projected Profit and Loss (Income) Statement: Write a seasonality scenario for a typical year in your business considering obvious forces Answer the following questions: When does your industry collect money - before, during or after the sale? Long after? When do you have to pay for inventory? What are the time lags between paying for inventory and receiving money for selling that inventory? Generate monthly numbers for the year and prepare an income statement including taxes

Action Step 42: Befriend a Banker Strategies for Working with Your Banker / Make Your Banker a Member of Your Team Seek your banker's advice on pulling your Business Plan together Comparison shop for money Ask your banker questions The more successful you become, the more you need a close banking relationship Small Business Development Centers

Action Step 43: Designing a Vendor Statement Form Your vendors' verbal promises become written promises Be firm, pleasant & tough Determine the standard terms in the industry Use a lot of open ended questions during negotiations

Action Step 44: Prepare to Meet Your Lenders Part A: List potential lenders & investors Begin with family & friends Move on to business acquaintances & institutional lenders Part B: List reason why lenders & investors should risk their money on you Part C: Check out the popular crowdfunding sites Part D: Test your pitch with you colleagues Part E: Go out & meet with potential lenders & investors - shake additional branches of the money tree