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We hope you will discover various and useful business information to help you reach your goals.
 

Determine The Cost

It is essential to determine the costs of starting your venture and know how much capital is required before you begin. Your financial planing will serve you better and prove your professionalism when you go out in search for financing. It is good idea to prepare BEST, WORST, and MOST LIKELY case scenarios. The funds you'll require fall into two main categories:

INITIAL COSTS - land, building, fixtures, supplies, equipment, cars, trucks, licenses and permits, decorating and remodeling, starting inventory, utility installation fees, promotion for opening and unexpected expenses.

OPERATING COSTS - day-to-day costs such as rent, supplies, salaries, taxes, rising inventories, insurance, advertising, distribution, repayment of loan and interest car expense or travel, other financial expenses (sales discounts, bad debts), professional services (lawyers, business consultants, accountants etc) and many other business costs depends on type of business.
CASH FLOW FORECAST
It is very important to calculate your cash flow. Take time to anticipate when cash will be short, because sales and revenues of business are rarely constant. Some businesses are seasonal, others extend credit to customers etc. Cash flow planning help you to have enough cash to cover all your business needs.
BREAK-EVEN CALCULATIONS
Try to calculate the amount of sales needed for your enterprise to find break-even. Break-even point is the point where your total revenues are equal to your total costs. When you hit break-even point your business will start to earn a profit. Break even (BE) depends on many factors:

CALCULATION:
Total fixed costs / (price - less cost of sale - less variable costs) = Break even
Fixed costs (FC)
Price (P)
Cost of sale (CS)
Variable costs (VC)
Break even (BE)
 

RECOMMENDED  LITERATURE

Private Equity and Venture Capital - A Guide for Investors and Practitioners - With contributions from experts in private equity finance and the leading investors in this growing asset class, this book provides detailed insight into this expanding area of finance. This book is essential reading for those who need to understand the risks and returns involved in private equity investment as well as experienced investors who want to profit from markets other than their own.

How to Really Start Your Own Business - W.D.Bygrave, professor of entrepreneurship, Babson College "Gumpert's how-to book is simply the best. No would-be entrepreneur should launch a business before reading this book."

Be Your Own Business!: The Definitive Guide to Entrepreneurial Success - The road to entrepreneurship can be quite confusing. Many people do not know where to begin. This systematic and comprehensive guide to choosing the right kind of business and dealing with the unique challenges of entrepreneurship helps readers make all the right choices at every step along the road to becoming successful entrepreneurs.

Tested Advertising Methods - A legend in advertising for more than 60 years, John Caples still serves as a guide to generations of creative marketing people. Now his classic work on how to create successful advertising has been updated by respected advertising consultant Fred Hahn. It retains all the clarity, candid analysis, time-tested experience and invaluable award-winning ideas from the original, while bringing it right up-to-the-minute on the many new changes in the field.

 
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