Go to the Gust.com website and take a look at the following four companies you will find there (make sure you are
searching with the “companies” tab selected): Heather’s Choice (back-country food product); Soothie Suckers (herbal
sucker product); Qcut (a custom jeans company), and Abom (anti-fog products).
For this homework assignment you are to estimate the cost of starting a business and getting it to the point when it is
generating revenues and is cash flow positive. The startup company you are to analyze should be one of the four
companies listed in gust .com. You should estimate these start-up costs for the company as if it is just starting from the
idea. Areas you should think about that may require investment capital are product development, working capital for
inventory and funding accounts receivable, buildings and real estate, tooling, computers and supplies, equipment,
furniture, prepaid insurance and other professional expenses, and operating expenses through the time when the
business becomes cash flow positive. You should do your analysis in excel.
