Explain the breakdown of Startup Costs of an North American Electric Car Company

The startup costs (which include capital investments and operating expenses) should include all the costs necessary for the business to make its first sale. New firms typically need money for a host of purposes, including the hiring of personnel, office or manufacturing space, equipment, training, research and development, marketing, and the initial product rollout. At the feasibility analysis stage, it is not necessary for the number to be exact. However, the number should be fairly accurate to give an entrepreneur an idea of the dollar amount that will be needed to launch the firm. After the approximate dollar amount is known, the entrepreneur should determine specifically where the money will come from to cover the startup costs. The total startup cash needed can be estimated using the following table.

Total Startup Cash Needed (to Make First Sale) \begin{tabular}{ll} \hline Operating Expenses & Amount \\ \hline Legal, accounting, and professional services & \\ Advertising and promotions & \\ Deposits for utilities & - \\ Licenses and permits & - \\ Prepaid insurance & - \\ Lease payments & - \\ Salary and wages & - \\ Payroll taxes & - \\ Travel & - \\ Signs & - \\ Tools and supplies \\ Starting inventory \\ Cash (working capital) \\ Other expense 1 & - \\ Other expense 2 & - \\ Total Startup Cash Needed = & \\ \hline \end{tabular}