Review your funding sources for your business as well as your start-up costs. This is information you have gathered in the process of completing your funding comparison chart. One of the charts you will need to include in your business plan will be what it is going to cost you to launch your business. Imagine the first day, and the store location or office that you begin your business in; or maybe even your garage from where you are operating your business. What is in that room, and how did it get there? Those are all sunk costs. Any ongoing initial cost will be fixed costs for which you will need to account. There may be some assets that you need to acquire. Those will be items that you can identify on your day one balance sheet. Start to identify what these costs and investments are and make mention of these things in a narrative form in the discussion, as well as potential funding sources. You will need to account in your business plan for how you are going to have enough cash to operate your business until you reach your Break Even point and beyond.
– 250-300 words
– Effectual Entrepreneurship (2nd ed., 2017) by Read, Sarasvathy, Dew, & Wiltbank. Publisher: Routledge (Paperback ISBN: 9781138923782; E-book ISBN: 9781315684826)
- Business Plan Format (use for initial outline): https://bit.ly/33pCP7W
- Affordable Loss Principle — text Chapter 12