Start Up Costs

1.What is the name of your company?

2.Research a location for your business to determine your company's address.Possible research sites to use include:

a.http://www.loopnet.com/Ohio/Dayton-Commercial-Real-Estate/

b.http://www.cityfeet.com/cont/oh/dayton-commercial-property#pgNum=3

c.http://www.bizjournals.com/dayton/bizspace/

3.If you are going to purchase the real estate, how much will it cost?

4.If you are purchasing the real estate, how much of its value is for land?How much for buildings?You can use the real estate office for property's county to determine this.For example, the Montgomery County Treasurer's Web site is http://www.mctreas.org/.

5.If you are going to lease the real estate, how much will it cost per month?

6.If you are going to lease the real estate, how much is the security deposit?Will you be required to pay the first and last month lease payment up front?

7.If you are going to lease the real estate, what (if any) expenses are included in the monthly lease amount?

8.How much do you estimate it will improvements (build-outs) cost to make the real estate usable for your business?Itemize the improvements, estimate high, and add 25% to your final cost!

9.Will you need to buy special equipment to operate your business? What will that equipment be?Where will you purchase (or lease) the equipment?Will you buy new or previously owned equipment?How much will the equipment cost?Itemize your findings and add 25% to your final cost.

10.Will you need to purchase furniture for your company?Where will you purchase?Will you buy new or previously owned furniture?How much will the furniture cost?Itemize your findings and add 25% to your final cost.

11.What do anticipate your monthly utility costs to be for your real estate? You may want to use the information at www.fmlink.com to estimate your utility costs.

12.How many vehicles will your business require?What type of vehicles will you need?How much will your vehicles cost?Possible research sites to use include:

a.http://www.chevrolet.com/build-your-own-chevrolet.html

b.http://www.showroom.ford.com/FDShowroom.jsp?&branding=1&lang=en&makeTransition=config&gnav=header-tools

c.http://www.ramtrucks.com/en/lineup/?app=bmo&

13.Try using http://www.yellowpages.com/dayton-oh/car-wraps to research how much it will cost you to brand your vehicle(s).Estimate high.

14.Will you need to train your employees before opening your business?If so, how many employees will you need to hire prior to your opening?How long will these employees be on the payroll before your opening?

15.Will your business have product to sale?If so, how much will you need to have in inventory when your business opens?Itemize your findings and be sure to save the Web links of your suppliers.

16.Will you need to buy property insurance, renters' insurance, general liability insurance, a business owner's policy, commercial auto insurance, worker's compensation insurance, errors and omissions insurance, directors and officers insurance, data breach insurance, or life insurance?If so, where will you find this insurance?How much will the insurance cost?Do some Web research and itemize your findings; be sure to save the Web links used for research.

17.How much do you expect to spend on legal services prior to opening your business?Be sure to save the Web links you used for research.For example, LegalZoom.com charges $360 plus state fees for an LLC startup package.Itemize your findings and be sure to save the Web links used for research.

18.How much do you expect to spend on accounting services prior to opening your business?Remember, Professor Hodges estimated his firm would charge a startup business around $1,500 for consulting and setting up the chart of accounts.Itemize your findings and be sure to save the Web links used for your research.

19.Will your business require licenses or fees?Which ones, and how much will they cost?Remember to utilize the Business Start-Up Resources folder I provided you for Chapter 02.Itemize your findings and be sure to save the Web links used for your research.

20.Do you expect to create "Buzz" for your company by doing some pre-opening marketing?If so, what type of marketing will you be doing?How much do you expect this to cost?Itemize your estimated costs.

21.How much money will you have to invest in your new company?

22.Do some Web research to find average interest loan rates and typical loan terms for the following types of loans.Be sure to save the Web links you used for research.

a.Commercial Business Loans

b.Commercial Mortgage Loans

c.Automobile Loans

d.Business Credit Cards