Spanish Resources will be incorporated in the state of Connecticut as a general corporation (Subchapter C).
The company will provide website development services to tourism destinations in Mexico. Although the company has no operating history, the founders, Carolyn and Jerry, have extensive experience in the competencies required for the company to succeed. The company will have a more than adequate amount, with $300,000 investment.
2.1 Start-up Summary
There are three features of the start-up expenses that are worth noting.
First, the research and development expense involves the founders traveling to appropriate destinations to gather first-hand information about the market and market conditions.
Second, the company is investing heavily in sales collateral because of the need to project a strong quality image from the company’s inception.
Third, the company is assuming the need for only a single base of operations.
|Research and development||$20,000|
|Total Start-up Expenses||$62,500|
|Other Current Assets||$0|
|Start-up Expenses to Fund||$62,500|
|Start-up Assets to Fund||$387,500|
|Total Funding Required||$450,000|
|Non-cash Assets from Start-up||$20,000|
|Cash Requirements from Start-up||$367,500|
|Additional Cash Raised||$0|
|Cash Balance on Starting Date||$367,500|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$50,000|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|Total Planned Investment||$300,000|
|Loss at Start-up (Start-up Expenses)||($62,500)|
|Total Capital and Liabilities||$387,500|