Sample Cost and Financing Sheet

The cost and financing section is important because it breaks down all of your start up costs and financing. Lenders want to know: How much will the start up going to cost? And how are you going to finance it? Very important, especially if you are approaching lending and funding agencies. This is the cost and financing sheet for our fictitous company, ABC Cleaners.

ABC Cleaners is approaching SPA for funding contributions, and a bank for a loan. This is how they are going to structure their financing.

ABC Cleaners
Projected Funding and Financing

Projected Costs

Financing

 

Capital & Operating$Capital & OperatingAmount%
     
Office furniture$12,500Cash equity$12,95010%
Computer equipment$7,500SPA funding$71,22555%
Telephone$5,000Commercial financing$45,32535%
Leasehold improvements$7,500   
Vehicles (3 vans)$60,000   
Cleaning equipment$15,000   
Legal$1,500   
Sign$1,000   
Working capital$5,000   
Inventory$15,000   
Sub total$129,500Sub total129,500100%
     
Marketing
$
Marketing
$
%
     
Grand opening$1,000Cash from operations$2,40040%
Marketing$5,000SPA funding$3,60060%
Sub total$6,000Sub total$6,000100%
     
Business support
$
Business support
$
%
     
Mentoring & accounting$10,000Cash from operations$2,50025%
  SPA funding$7,50075%
Sub total$10,000Sub total$10,000100%
     
Total project costs
$
Total project financing
$
%
     
Capital & operating$129,500Cash equity$12,9508.9%
Marketing$6,000Cash from operations$4,9003.4%
Business support$10,000Commercial financing$45,32531.2%
  SPA$82,32556.6%
     
Grand Total$145,500Grand Total$145,500100%

Notice how everything balances out in each of the 3 sections, capital, marketing and business support. When putting together a cost and financing package, make sure all costs and financing balance out. Look closely at these figures and compare them to whats on the balance sheet. You will notice what items are included on the balance sheet such as the fixed assets, loan, equity and depreciation. This will help you place those items on the balance sheet.

 

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