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Venture Budgeting an Forecast

In: Business and Management

Submitted By catz54
Words 720
Pages 3
Venture Budgeting and Forecast Paper
Kathleen Jones
FIN/375
March 9, 2015
Leon Daniel, Jr.

Venture Budgeting and Forecast Paper Building a business from the ground up will involve startup costs, such as a patent for the name and logo, advertising, site for the business, improvements that need to be done to the site, legal fees, insurance, starting inventory and equipment, financing, and cash. The first step to opening the business would be to purchase the building that would serve as both the studio and shop. There is a warehouse type building for sale for $60,000 on Main Street where there is heavy daily traffic, which would be an ideal spot to generate traffic into the shop. The building will be mortgaged at a 3.75% fixed interest rate for 10 years, with a down payment of $5000 and a payment of $607 a month. I have purchased the building with the intention of remodeling the lower front for the shop, which has been estimated at $15000.00. The rest of the building will be used as a studio, holding the equipment for crafting the $500 and insurance has been purchased totaling $10000 for the year. I have estimated inventory at a cost of $50000 as it has been accumulated over years. Equipment to recycle, clean, fix, and craft the jew elry has been estimated at $5000, with operating supplies estimated at $10000. Utilities, such as telephone and electricity, will incur costs that have been estimated at $4600 per year. Taxes on the land and building were estimated high, as they are subject to change as years go on and will be revisited on an annual basis with each profit and loss statement. Once the remodel is done with the jewelry show cases in place and the shop is stocked with inventory, which has been an ongoing task for many years of flea marketing, going to estate sales, and garage sales. I will hold an open house. The open house...

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