Question
Have I explained costs for my company? There is an abandoned plant in South Bay, Florida at the cost of $1.5M, this plant is located
Have I explained costs for my company?
There is an abandoned plant in South Bay, Florida at the cost of $1.5M, this plant is located on the same highway as the Florida Crystal plant. We will use a website as a base for our startup costs. https://www.fundera.com/blog/business-startup-costs.Ms. Contreras and Ms. Hearn are the investors and they both have a fifty percent interest in Shugar Cane Company, in addition, this business will start in 2020. Both investors will invest $100,000.00 of their 401k's for a total initial investment of $200,000.00. Shugar Cane Company will choose local banks in the Southern Florida area for financing of the purchase of the building, and other business-related costs. Shugar Cane Company will apply for a Small Business Association Loan, along with a Bank of America Loan based upon our personal credit FICO scores. In addition, an AMEX card will be used for additional expenses. We anticipate loans of $480.00 to supplement our initial investment. Our startup expenses involve the purchase of our warehouse, remodeling and other expenses for our building totaling $1,925,000.00. We have included costs for transporting sugar cane waste from various sugar cane companies. As stated earlier, we will have costs but since we are a startup, we will acquire used semi-tractor trailer trucks, in these transportation costs we have added gasoline, costs to clean the inside of the trucks so we can load the trucks at maximum capacity at all times, drivers will collect bagasse for further processing by Shugar Cane Company. These costs are $720,000.00. The office expenses total $80,000.00, We will purchase machinery at a cost of $125,000.00, fixtures for $10,000.00 and other office and manufacturing needs at $50,000.00. Location and Administration expenses are prepaid expenses and administrative fees of $175,000.00 for our startup year. Our beginning inventory of bagasse is $250,000.00 to begin manufacturing our product. Our advertising and promotional expenses must be kept low and be will use year-end bonuses as incentive for our salespeople. We will have a loss, therefore, taxes will be negligible for our first year, but we will pay our required state and federal taxes. Emergency costs have been factored in with the previously listed expenses. Our beginning balance sheet will have $10,000.00 on our first day. The total sources of funds, subtracted from our startup expenses equal $(2,689,750.00).
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