Business Solutions Consulting
Start-Up Summary
BSC’s co-owners, Andrew B. Christiansen and David E. Fields, will each provide $49,750 in investment that will cover the bulk of the start-up expenses. The rest of the required financing will come from the Small Business Administration (SBA) 10-year loan in the amount of $100,000. Combined, these funds will be sufficient to cover the company’s expenses throughout the first year of operations, which is the most critical from the cash flow standpoint.
The following chart and table contain projected initial start-up cost data.
| Start-up | |
| Requirements | |
| Start-up Expenses | |
| Legal | $2,500 |
| Office Supplies | $2,000 |
| Other | $1,000 |
| Total Start-up Expenses | $5,500 |
| Start-up Assets | |
| Cash Required | $150,000 |
| Other Current Assets | $20,000 |
| Long-term Assets | $25,000 |
| Total Assets | $195,000 |
| Total Requirements | $200,500 |
| Start-up Funding | |
| Start-up Expenses to Fund | $5,500 |
| Start-up Assets to Fund | $195,000 |
| Total Funding Required | $200,500 |
| Assets | |
| Non-cash Assets from Start-up | $45,000 |
| Cash Requirements from Start-up | $150,000 |
| Additional Cash Raised | $0 |
| Cash Balance on Starting Date | $150,000 |
| Total Assets | $195,000 |
| Liabilities and Capital | |
| Liabilities | |
| Current Borrowing | $0 |
| Long-term Liabilities | $100,000 |
| Accounts Payable (Outstanding Bills) | $1,000 |
| Other Current Liabilities (interest-free) | $0 |
| Total Liabilities | $101,000 |
| Capital | |
| Planned Investment | |
| Investor 1 | $49,750 |
| Investor 2 | $49,750 |
| Additional Investment Requirement | $0 |
| Total Planned Investment | $99,500 |
| Loss at Start-up (Start-up Expenses) | ($5,500) |
| Total Capital | $94,000 |
| Total Capital and Liabilities | $195,000 |
| Total Funding | $200,500 |
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