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 described in HW #4. If you want to use the same company you used for HW #4 that is okay. 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 and upload the excel file to this link. In class we will do some comparisons of what you came up with.

 

 

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