The Basics of a Start Up
By: Shawntara McCaskill
Professor: Otis Jackson
Course: Financing Entrepreneurships
Date: May 3, 2015
LB’s Entertainment Mall will obtain use of a new structure. Start-up costs will cover a number of details to convert the structure to suit the owner's concept both visually and functionally. Included in start-up costs are all the necessary expenditures to cover the pre-opening, hiring, staff training, addition and revision of equipment needs, supplying toys, soft play equipment, inventory, and other essentials.
Long-term assets represents the value of the barn and the land on which it sits. Renovations are expensed.
Start-up Requirements
Start-up Expenses
Legal Fees
$20,300
Insurance
$25,800
Construction
$800,000
Computer - Administrative
$15,000
Marketing and marketing strategy
$50,000
Architect/Remodeling
$115,000
Equipment (i.e. toys)
$550,000
TVs & video game consoles
$21,250
Cleaning supplies
$2,000
Office Supplies
$2,000
Total Start-up Expenses
$1,601,350
Start-up Assets
Cash Required
$365,000
Start-up Inventory
$100,000
Other Current Assets
$200,500
Long-term Assets
$140,000
Total Assets
$805,500
Total Requirements
$2,406,850
Financial Plan
LB’s financial plan is based on conservative estimates and assumptions. We plan to combine owner investment and crowdfunding to fund our start-up requirements and to sustain the business to break-even, within 8 months to a year.
Financial Ratios
Financial ratios are tools used to assess the relative strength of companies by performing simple calculations on items of income statements, balance sheets and cash flow statements. Ratios on Profitability, Liquidity and Leverage gives the
