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Startup Finance
Starting a business requires capital or funds. This is called startup finance. Funds could come from a business loan, personal savings, angel investors, grants, venture capitalist or may even include buying a business to fund another.
435 Questions
Average utility costs for a bakery?
What is the average gas and electric bill for a small bakery in San Diego area
How much start up cost for opening a barber shop?
If the building is not readily equipt and your starting from nothing youll require
Decoration
Chairs (barbershop syle)
heating
Lighting
Electics - rewired to provide sockets for razors etc
Shampoos
Cleaning materials/equipment
Clothes protection for customers
towels
overalls for you
advertising
telephone set up and connection
licences to trade
hair cutting tools - i.e. razors scissor etc
Opening cash float
all in expect to spend a minimum of 5000 just to open the doors on a rented property
What is the relationship between entrepreneur capital and venture capital?
Its basically pre-seed funding (before you have any proof of concept) against investment in companies in a more advanced stage.
How do you write a substantive executive report to a CEO?
A substantive executive report can be written via a form that can be recieved from an executive, and once completed and filled out properly, it can be turned in at the front desk of the business.
Can a Limited Liability Company LLC accept a cash gift?
A family Limited Liability Company has great potential as an estate planning device to
reduce the Federal Estate and Gift Tax by as much as 40%. Although most people hear about Family Limited Partnerships ("FLPs"), a Limited Liability Company ("LLC") may actually be the better choice. However, either of these entities allow people to make gifts, avoid paying Federal Estate and Gift tax and maintain control. In addition to the tax savings, an LLC, unlike an FLP, can provide the entire family with asset protection. An FLP or an LLC is only really needed as an estate planning technique if a person's estate exceed $2,000,000, if single, and $4,000,000 if married. This is because as of 2008, each individual person has an estate tax exemption which allows him or her to pass $2,000,000 tax free upon death. If your estate exceeds this $2,000,000 per person exemption and you do not want your beneficiaries to pay a 48% tax, an LLC or FLP must be considered.
Making Gifts and Maintaining Control
While most people are aware that they can make tax free gifts of $12,000 each year, few people can afford to give away large sums of cash. For those who have the cash to give, they often have concerns that the money would be wasted. An LLC or FLP provides a solution by allowing parents to make gifts of property while continuing to maintain control over the assets gifted.
An LLC is usually started with parents transferring property, such as rental property or stock, to an entity in exchange for ownership "shares". The parents would then be the owners of the LLC shares rather than the underlying assets. This ownership structure allows the parents to gift interests in the LLC, instead of the underlying assets. While children and grandchildren receive valuable LLC shares, such shares do not need to have any management or voting rights. The parents, as Managers, remain in sole control of the affairs of the company. In addition, to limiting voting rights, the shares in the LLC can be restricted so that children or grandchildren cannot sell their interest in the LLC without first obtaining consent and / or offering it to the parents.
While most parents choose this two tiered structure to maintain control, gifting shares that lack management or voting rights can actually achieve a estate / gift tax savings of more than 40%. Shares that have no voting or management rights are clearly less valuable than voting shares and are usually given a 40% discounted value. Because the Federal Estate and Tax is based on the fair market value of the property given, this reduction in value (known as a "discount") will also reduce any estate or gift tax that may be assessed on the transfer. This discount effectively allows a person to give 40% more property each year tax free. Thus, the $12,000 annual tax free exemption that each of us have can be used to completely shelter a gift of an interest in an LLC, even though the underlying assets are actually worth about $20,000. When these gifts are made each year to each child, and maybe grandchildren, the savings over the years can be astronomical. Keep in mind that the Federal Estate tax is assessed on the fair market value of all property owned upon a person's death. By transferring wealth to children and grandchildren during life, not only are the assets removed from your estate tax fee (so they will not be subject to the 48% estate tax) but so is the future growth of the assets.
What is Physical vs Financial Capital Maintenance?
Capital maintenance: Accounting concept that a profit can be realized only after capital of the firm has either been restored to its original level (called 'capital recovery') or is maintained at a predetermined level. It is necessary, therefore, to determine the value of capital before the amount of profit can be computed. Capital maintenance (paid from the capital funds budget) is the work performed using a systematic management process to plan and budget for known cyclical repair and replacement requirements that extend the life and retain the usable condition of facilities and systems. This includes what is commonly known as “deferred maintenance”: work that has been deferred on a planned or unplanned basis to a future budget cycle or postponed until funds are available; when the work is performed the deferred maintenance backlog is reduced. Physical maintenance: Physical Asset Management defines a "best way" of managing corporate physical assets to gain greatest return. It blends the best processes, practice and technology used effectively by industry leaders to assure highest effectiveness in your specific business, operating, organizational and material conditions. The purpose of Physical Asset Management is to ensure that the means of production/operation are available to meet mission, availability, yield, schedule, quality, and cost commitments effectively at optimum return. Physical Asset Management consists of a mix of processes, systems, practices, and technologies strategically implemented to achieve a specific mission and/or objectives. It considers market, business, and operating conditions; related opportunities; and site-specific conditions and requirements.
What was the average income for small business owners in 2006?
According to Salary.com, the average income of a small business owner as of 2006 was $233,600.
How do you go about getting venture capital?
One of the most important things is to learn how to pitch your idea clearly. Many good ideas doesn't go through that first meeting mainly because it might be difficult to clearly illustrate your idea. If you are looking for some free resources and some other solutions please visit our site at www.investmentslides.com.
What role do investors play in your business?
Investors monitor the running of a business and protect their money
Difference between private equity and venture capital?
Typically, the difference is in the stage of the company the fund will invest its money. Private Equity Funds invest their money in mid-stage companies while Venture Capital Funds invest their money in early-stage companies.
Are there any disadvantages of receiving a government grant?
Yes, there can be disadvantages to receiving a government grant. Recipients often face strict compliance and reporting requirements, which can be time-consuming and complex. Additionally, grants may come with restrictions on how funds can be used, limiting flexibility. Finally, reliance on grant funding may create financial instability if future grants are not secured.
== IRS codes state you may deduct the percentage of your house expenses that you use for the business. If your house is 2000 sq ft and you use two bedrooms that total say 500 sq ft just for this example you may write off 25% of your house related expenses such as electric, insurance etc. Check with your accountant for more deductions as there are some great ones for home based businesses. == When declaring part of your home as a tax deduction, you have to make sure that part of your home is used for business only. For example, you can't declare a spare bedroom as a business expense if you also use it for other things, such as storage for household items or even for over night guests. The only items that are allowed in that room are things relevant to your business, with the exception of things that would normally be found in a public office (photos, etc.). Also, people with home based businesses are sometimes flagged for IRS audits more frequently than those who work in a public environment.
How much does it cost to start your own magazine?
What does it cost to start a Magazine? Well it could cost millions to start a magazine like Time Out Chicago and a 3-5 year break event, or as little as $50K but it all depends on your ad sales. If you can produce a publication that plenty of companies want to advertise in at a great page rate you are well on your way to success. I have been publishing magazines for over 7 years and I have seen plenty of them come and go.
What is the best way to finance a new home based business?
The best way to finance a home business is through leveraging. This is simply using other people's money to start and run your business. You can get a small business grant, small business bank loans business credit cards. I personally started my business by calling my credit card company to increase my credit line. Now, if you are going to use a credit card or any loan for that matter, make sure it is a business credit card or business loan, because the interest rates would be tax deductible only when those funds are used for business. There are many grants and low interest loans available for small and new businesses. The best way is to save, save, save. Try to save enough you can obtain what you need before you quit your day job. And realize you may have to work part time a little while longer while you establish your dream. In todays market world it is getting relatively inexpensive to gain foothold in an area and even compete with the big companies. Yes to grants, you can find a lot of resources online for this, NO Credit Cards, NO loans (with exception) have your business plan complete before applying.
If you're planning on starting a small home business, use a simple yet practical approach to get financing help.
What makes a business operational?
A business becomes operational when it establishes a consistent framework for delivering its products or services, which includes defined processes, resource allocation, and staff roles. This involves setting up necessary infrastructure, such as technology and supply chains, and ensuring compliance with regulations. Effective management and clear communication are crucial for maintaining efficiency and addressing challenges as they arise. Ultimately, operational readiness is about creating a sustainable model that can adapt to market demands and drive growth.
How much does it cost to rent 60000 square feet?
Usually $3-5 per square feet for that size depending on location. Take build-out and utilities cost into consideration to be used as your negotiating leverage.
Can you include living expenses when asking for venture capital?
Highly unusual request. The founder/owner would typically receive a base salary if they work at the business reflecting their contribution, skill level and ability-just like any other job.
How much does a venture capital analyst earn?
Depends on total years of work experience.
Here are my thoughts. You should get paid at least as much as your ibanking friends but the base/bonus mix will different. If ibanking pays analysts $65k in base and $55k in bonus for a total of $120k then you should get the same amount in total but bonus % should be adjusted down to maybe 33% of total comp. In this case you should make about $80k in base and $40k in bonus as a venture capital analyst.
