Marc
How much money do you need to open your own businesess
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3 answers
Misty Miller
Misty’s Answer
Marc,
Great question. This would be a question that would need to be answered with alot of things in mind. For example, what type of business are you looking to go into? Are you going to own or rent the building that your business is in? What type of equipment are you going to need for your business? How much do you want to have in petty cash in case you need something in a hurry in your business? How many employees is your business going to have and what are you going to be paying them? All of these would factor in to the cost to start up a business. Also another thing to think about would be the location of the business in that is it going to be a rural business or is it going to be in a bigger city as this is going to affect your overhead based on the amount of customers you have coming in depending on the business type you are looking at. One more thing you may need to think about is are you going to need any other kind of licenses for your business other than a business license? This can get expensive quick in its own rite. Good luck on your venture and hope this helps.
Luiz Belmiro
Luiz’s Answer
Hi Marc M.
This question is very interesting!
The first thing that we need to do is a business plan. On your financial topic, you need to make a budget. There are several types of budget: production, human resources, inventory, in addition to the main (corporate) business plan, which is composed of:
Budget or sales projection. Budget of sales deductions and variable expenses (freight, commissions, taxes, etc.) Budget of production costs.
Thus, we will be able to detect in each one the needs for money to start a business: cash flow, balance sheet, income statement for the year, etc.
The money will be needed for working capital and the purchase of capital goods.
Example of a confectionery: Depending on the size of the confectionery, there is an average price range to start the business. A small and comfortable structure costs $ 1,240.00, on average, with working capital $ 740.00, and the investment in equipment and facilities $ 520.00. Total: $ 2500.00
Luiz recommends the following next steps:
Renee Cervantes
Renee’s Answer
Reach out to your local small business association and see what kind of grants are available before investing money.