Start-up Expenses and Capitalization


Assignment #4: Start-up Expenses and Capitalization
In this paper, you will have five to twelve pages of data, charts, and graphs with detailed written descriptions that will explain exactly what the expenses will be for your business. These expenses must be explained in context of what you learned in ACCU 602, BUSU 610, and FINU 607 relating to costs and expenses and be tied directly to your Mission, Vision, Marketing, Management and Operational plans. Research other organizations to determine how they accomplished similar or related outcomes. You must cite your sources (the other organizations and connect to suppliers on which you based your estimates). Note that raw material volumes must match the production and inventory figures in your Financial Plan, due next week. Be sure to note what assets, if any, the organization will garner in return for initial capital invested.

Carefully explain the assumptions you are using in your financial analysis (assumptions include, financial assumptions, hiring assumptions, economic assumptions, government regulation penalties and rebate assumptions, etc). These assumptions should be clearly described using headings. The assumptions section often takes three to four pages and five to ten citations.

The expenses must be explained in context of what it costs other organizations to accomplish similar or related outcomes. Be sure that everything you mention in the Marketing, Management, and Operations sections have a line item in your financials and in your analysis. Papers that do not clearly explain the connection between marketing, management and operations are C papers (at best). This assignment does need to follow APA guidelines.

Start-Up Expenses Report

Have you explained all of the expenses for starting your business? No expense is too small to explain. Things like insurance, employees (will you pay them health insurance?), raw materials, supplies, equipment. You should have a list of 30 to 40 items of start up expenses. You should have researched the cost of each of these items. Find out what your competitors are spending on their monthly expenses. Include that research in your paper.

12-Month Profit and Loss Projection Report

Fill out the form wound in Week 5 entitled “12 Month Profit and Loss Projection). Fill out each item. Use research on like businesses and show that research in the paper. In your paper explain what the 12 Month Profit and Loss Projection Means (not just what it says). Also explain all of your start up expenses.

Written Analysis

This week you will submit at least three documents. Start Up Expenses, 12 Month Profit and Loss Projection and a minimum of five pages of written descriptions to explain what the expenses will be for your business. Your projections should be based upon research of like businesses. All projections will be researched and the research cited.

Be sure you share this paper with your assigned Writing Partner to gain their feedback. Students who work closely with their Writing Partner usually get better grades and more points. You can read in Course Information more about how to work with your Writing Partner.

Remember as you include any graphs or charts you are to introduce all graphs and charts and then to explain after the graph or chart exactly how it will inform your business plan action. If you bring in graphs and charts from other sources (like maps, or .gov data) these must be cited using APA standards.