If you’re unsure about how much money you’ll need to open your own business, you better sit down and figure it out. The first thing investors or banks want to know is not whether you have a business plan (though they’ll ask for that too) but how much money you need and why. But it isn’t as difficult as you might think, and there’s plenty of help out there.
Obviously you have to first think about the costs you’ll need, including sales, technology, wages and benefits. Then factor in the time to get your business off the ground. Remember there will be specific costs for your type of business – a pet supply store and accounting firm won’t have the same needs, for example.
For further help, SCORE Chicago is offering a workshop next Tuesday titled “How to Estimate Startup Costs” which covers, well, exactly what the title says. The course outline includes:
1. Estimating the potential market
2. Why you need to forecast your sales
3. Some methods of sales forecasting
4. How to convert the sales into capacity
5. Capacity planning
6. What is capacity unit? How do we convert the sales forecast into units or capacity?
7. Cost estimations
8. Start-up cost and cash-flow projection
The workshop will be held on Wednesday, Jun 22, 2011 from 8:45 AM to 12:00 PM at the SCORE/SBA Office in Citicorp Center, 500 West Madison Street, Suite 1150. It isn’t free – cost is $50 and $60 at the door - but you need to know this stuff, right?
For registration and to learn about other events, go here.