Small Business Management MKTG 216

Name ______

Homework 3 Business Type ______

Create an Income statement for a typical year for your company.

Use your text as a guide. Don’t worry about depreciation, interest expense, dividends paid and change in retained earnings.


Create a list of one time and monthly costs that your business will face. From this information how much cash will your business need to start (Assume cash needed = One time costs + total of 1 year’s worth of monthly expenses). Guestimates are acceptable as long as they are in the right ballpark (For example a phone bill would be around $50 per month for a 1 person operation).

Monthly / Cash Needed
Expenses / to Start
MONTHLY COSTS
Salary of owner-manager
All other salaries and wages
Rent
Advertising
Delivery expense
Supplies
Telephone
Other utilities
Insurance
Maintenance
Legal and other professional fees
Miscellaneous
Subtotal
ONE-TIME COSTS
Fixtures and Equipment
Decorating and remodeling
Installation charges
Starting inventory
Deposits with public utilities
Legal and other professional fees
Licenses and permits
Advertising and promotion for opening
Cash
Other
Subtotal
TOTAL ESTIMATED START-UP CAPITAL