Your Small Business
DECEMBER 2010 www.teachersfcu.org
Small Business Start-Up Costs
Every business is different and has its own specific cash needs at different
stages of development; therefore, there is no generic method for estimating your
startup costs. Some businesses can be started on a shoestring budget, while Start-Up Costs to Consider:
others may require considerable investment in inventory or equipment. It is vital 1. Purchase price or down-payment if buying a business
to know whether you will have enough money to launch your business venture.
2. Office furniture
To determine your startup costs, you must identify all the expenses your 3. Computer hardware and software
business will incur during its startup phase. Some of these expenses will be 4. Setup, installation and consulting fees
one-time costs, such as the fee for incorporating your business and the price 5. Business cards and stationery
of a sign for your building. Some expenses will be ongoing, such as the cost of 6. Decorating and remodeling
utilities, inventory, insurance, etc. 7. Fixtures, counters, equipment & installation
While identifying these costs, decide whether they are essential or optional. A
8. Starting inventory, raw materials, tools, etc.
realistic startup budget should only include those elements that are necessary 9. Deposits with public utilities
to start the business. These essential expenses can then be divided into two 10. Legal and other professional fees
separate categories: fixed (overhead) expenses and variable (related to business 11. Business licenses and permits
sales) expenses. Fixed expenses will include figures like the monthly rent, 12. Advertising and promotion for opening
utilities, and administrative and insurance costs. Variable expenses will include 13. Signage
inventory, shipping and packaging costs, sales commissions, and other costs 14. Rent & security deposit (often equals 3 months rent)
associated with the direct sale of a product or service. 15. Operating cash
The most effective way to calculate your startup costs is to consider the various 16. Other
categories of costs (both one-time and ongoing) that you will need to estimate Sources: www.sba.gov/smallbusiness planner and www.businessknowhow.com
prior to starting your business.
What Is a Business
Line Of Credit?
A business line of credit gives your business access to cash, whenever you
need it, up to a pre-specified amount. The main advantage of a line of credit
Funds will always be available to you, when you need them, but you pay no
interest until you draw on the line. This makes a line of credit an excellent
resource to have at your disposal in case of an emergency. Your line can
be secured or unsecured, with multiple repayment options, and a variable
If you feel your business could prosper with a business line of credit, give
Business lines of credit are great for a variety of ongoing or short-term us a call. TFCU’s Assistant Vice President of Credit, Jordan Herzlich, will
financing needs. Use the funds to improve your cash flow, purchase be happy to review the loan options available to you. He can be reached
inventory, materials and equipment. at (631) 698-7000, extension 3016, or firstname.lastname@example.org.
Holiday Gifts with Meet Your New Business
Your Staff in Mind
Choosing holiday gifts for your employees can be a daunting challenge. Here are a few
ideas to make your gift-giving less stressful: Name: Craig F. Novak
Hometown: Stony Brook
• Perhaps you could take your staff out to a nice lunch; that eliminates the stress of
having to buy gifts and will appeal to everyone. Phone: 631.698.7000 x6029
• A gift certificate to a local store or restaurant is a great idea and easy to get.
• Gift baskets filled with holiday goodies are also popular. BACKGROUND
Want an even easier option? TFCU offers Visa Gift Cards* in a wide array of In the last several years, Craig has served as a business
denominations. They’ll provide you with one-stop shopping and should make everyone relationship manager for HSBC and, most recently,
on your gift list smile. They’re smart, thoughtful and always well received. Best of all, you Gold Coast Bank. Prior to that, he had a long career in
don’t even have to wrap them! investment banking at Merrill Lynch.
*Purchase gift cards at any branch location ($4 per card). Ten per year free to Educated Choice members.
Craig graduated from Brown University, with BA in History
and from New York University with an MBA in Finance.
Name: Gary Frisina
Hometown: Bay Shore
Phone: 631.698.7000 x6689
For the last several years, Gary has worked as a Business
We’re Here for
Relationship Manager for Chase and HSBC. Prior to that,
he was a Trader with most of his career spent on the floor
of the American Stock Exchange.
Your business and its needs are unique. TFCU’s business checking accounts and loans
Gary graduated from C.W. Post, with a BS in Finance.
are designed to provide members with the basic financial services that are so important
to a successful business. Additional Business Services
Business Accounts and Loans: Lockbox
Coin and Currency Services
• Business checking account • Commercial vehicle loan
• Savings account • Commercial mortgage
• Certificate account • Small Business Administration loan
Safe Deposit Boxes at select branches
• Money market account • Merchant Services Direct Deposit
• Visa business credit card - Credit and debit card processing Payment Processing
• Line of credit - Risk management and fraud control features Merchant Processing
- Equipment for lease or purchase
2410 N. Ocean Avenue, P.O. Box 9029
Farmingville, NY 11738-9029
631-698-7000 • 1-800-341-4333*
*Outside the Long Island, Westchester and New York Metro areas.
While consistent effort is made to ensure the integrity of
information contained in this publication, material should
not be considered legal, financial or professional advice.
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