You should conduct secondary and primary research to determine the costs associated with startup.
Secondary research would be to read material from secondary sources on cost of assets or services.
Below we go through multiple sections of the business plan that meet the above purposes.
Note: Depending on the use of the business plan, it may be advisable to remove certain sections for a specific purpose.
Every business begins with a combination of effort and assets.
The initial funds to obtain the assets or services necessary to start a business are known as seed funds.Many entrepreneurs depend too much on their own time and efforts to carry out business functions.While this may be necessary, it pulls the entrepreneur from his/her primary tasks – planning and organizing resources to develop the business.For example, when presenting the business plan to equity investors, it may be advisable to remove the portion regarding the financial status of the founders.Likewise, as the business develops the financial condition of the owners may be less relevant than the corporate fiscal health.Disclose the personal net worth, assets, obligations, outside investments, and sources of income of each individual.This information can be rather personal, but it serves multiple purposes.As previously discussed, the business plan serves two primary functions: Developing the financials section will give the business founder/managers a plan for budgeting, estimating future expenses and revenues, and business projections.Likewise, a lender or outside investor will depend greatly upon the financials in evaluating the appeal/risk of investing in the business.This information serves the dual purpose of satisfying the requirements of lenders and investors.Potential investors will want assurance about the owner’s ability to meet the financial needs of the business.