You need to develop a "Sources and Uses $($Application$)$ of Funds" statement for the start of your business. Remember, Sources and Uses of Funds must always be equal. Make a T and put Sources on the left with each source identified with $ and Uses on the right with each use identified with $$.$ See Chapter $10$ in the Text for an example of a Sources and Uses of Funds Statement.

Where will the funding come from for your business?

If you will be borrowing, will it be from debt or equity financing? How much capital will you invest yourself as the business owner, vs what you will request? Table $11\mathrm{.}1$ can help guide you through alternative sources of financing if you need some ideas. You are welcomed to use it if it helps, but you're not required to include it$.$

Other considerations:

$-$ The total amount you need funded in terms of your start$-$up expenses and operating capital until you believe that you will start to earn revenue.

$-$ Remember the Burn Rate $=$ the amount of money you are going to spend before income is realized. If you burn through your money, you will have to raise more capital and that may be very difficult at this stage of the start$-$up business.

$-$ Which sources will you be using and why?

$-$ Evaluate your options in terms of feasibility, cost, and the consequences of using this source if the business goes bankrupt.

How will you use the initial funds?

Remember, total sources $ must always $=$ total uses $$!$