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B6. Startup Budget/Funding Request

DIRECTIONS: In this section, you will describe the financial details of your company and how you plan to obtain money to start your business. To get started here, first you need to plan a budget for starting up your business. In this budget you will need to list the equipment you need and the costs of that equipment for one year

For our project we are going to require the following items in your budget:
  • Rent on a building (at least 1000 square feet)
  • Deposit on building
  • Telephone
  • Internet Connection
  • Internet Website
  • Furniture/Fixtures for your business
  • Cost of machinery needed for your business
  • Cost of insurance
  • Office supplies
  • Business license/permits
  • Utilities for the year
This may seem complicated- but we are actually keeping this list simple! How will you find out realistic numbers for these items? Research! Scour the internet, talk to other entrepreneurs, call the city or utility companies- whatever it takes to get these numbers. Remember, people like to help, especially after you explain what you are doing.

You will create you funding request based on your startup budget. Here, we list in detail the money we have (our assets- the cash you and your business partners have on hand) and the money we need to have to get our business started (liabilities- the money you need). See the example for format.

Finally, it's time to make your startup funding request. How much money do you need. By now, that simple to figure out:
  • Assest - Liabilities = Startup Funding Request
Then, write a short paragraph where you describe your plan for fulfilling your startup funding request. Remember, you cannot take out a loan from a bank and must raise money from family and friends to start your business.

Overall, this section may seem complicated- but it's really not. Just take it step-by-step and you'll do great!

Example Funding Request
Get Moving Shirts plans to raise at least $15,000 from friends and family to start the company.  Starting the company will involve the following:

Startup Budget
 Startup Budget Item  Cost for 1 year
Building Rent ($900/Month)   $9600
 Building Deposit  $1800
 Telephone ($50/Month) $600 
 Internet Connection ($75/Month)  $900
 Website  $400
 Furniture/Fixtures (T-Shirt Screen Printing)  $500
Machinery   $2500
Insurance  ($75/Month) $900 
 Office Supplies $250 
Business License/Permits  $500 
 Utilities $1000 
 Total Startup Costs: $18,950 

Company Assets and Liabilities
 Asset Source
 Asset Amount

 Jonathan  $5000
 Rudy  $2500
 Peter  $1500
 Total Assets:  $9000
 Total Liability:  $18,950
 Minimum funding Request (Assets - Liabilities):  $9,950

Based on our budget, Get Moving will need to find sources for a minimum of $9,950 to start our company. To make sure we have cash on hand to get our business going, we are going to seek $20,000 dollars in funding. We intend to seek out friends and family for our primary sources of money. To entice these individuals, we intend to offer a minimum of 5% return per year on any cash that is invested in the company, plus a share of any profits to be negotiated.