Click to download: Start up Cost Table
For many of you the reason you have written a plan is because you have startup costs related to a new business. Others may have costs related to an expansion or diversification of a product line. These new one-time costs will be considered your startup costs.
The purpose of this section is to organize and track all of these into one place, a table.
The benefits of the startup table are many.
1. It shows the total need and who is paying for what.
2. Having all info in one place allows easy adjustments as costs change or new needs are identified.
3. An easy sheet to provide to your bank or investors which can be easily adjusted depending on the ask and status of other financing that has been confirmed. The bottom line, this is what investors want to see.
A bank or investor will also request other financial documents, usually a 2 year cash flow for your business. Sometimes the cash flow document has space to include startup costs. When it doesn’t, you can use this table. As well, you will recall in section 1.9 of the business plan, “How funds will be used” the total of the startup funds can be referenced there or if you are providing the plan to a specific investor, you can include the startup costs you are asking for from them.