How to Project Business Start Up Costs and Revenue

Trying to estimate business start up costs and revenue can be one of the most difficult parts of starting your own business. You will need to spend a lot of time with this projection. Here are the basics of how to project business start up costs and revenue.

Start Up Costs

You can create a spreadsheet or use one of the online business start up calculators on the web. You are going to need to think about every potential expense that you will have. For example, make a column for business fixtures and equipment, remodeling, real estate acquisition costs, insurance, inventory, advertising, employee wages and any other expense. You will need to get estimates for everything. For example, you can shop around online for business equipment to get some prices. You can check with contractors about remodeling prices. Make sure that you have an estimate for every expense and add them up.

Revenue

Then, project how much you can sell each product or service for. Figure out the best case scenario for your business. Then you will want to take a percentage of that to be more realistic. Some experts say to estimate 10 percent of the best case scenario to determine if it is a good deal. 

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