Your Small Business Advantage 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 is flexibility. 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 interest rate. 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 Account Representatives 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 E-Mail: email@example.com • 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. EDUCATION 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 E-Mail: firstname.lastname@example.org BACKGROUND 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. Small Businesses Your business and its needs are unique. TFCU’s business checking accounts and loans EDUCATION 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 Wire Transfers • 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 www.teachersfcu.org 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. Check www.teachersfcu.org for all of our GREAT RATES!
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