(Optional) Explain the process of projecting initial funding requirements.

Explanation should include projecting

• start-up costs and cash shortfall until break-even
• short-term liabilities
• long-term liabilities.

Process/Skill Questions:

• What is the most common source for financing a new business? Why?
• How do start-up costs differ from personal costs?
• What are examples of one-time start-up costs? What are the types of expenses that occur monthly? What are typical sources of start-up capital?
• What are types of start-up financing? How does an entrepreneur determine the amount of personal investment and the amount to acquire from outside sources?
• What financial statements can help an entrepreneur get a loan?

Teacher Resources:

• Calculate your startup costs Links to an external site., U.S. Small Business Administration
• Financing Options for Small Business Links to an external site., Entrepreneurship Crash Course