You have many expenses before you even begin operating your

business. It is important to estimate these expenses accurately

and then to plan where you will get sufficient capital. However
opening a new business has a way of costing more than you
anticipate.

Startup Expenses
KRISHNA MULTIPLEX
Sources of Capital

Owners' Investment

(name and percent ownership) (in Rs)

RAJA SINGH 1,25,00,000

NISHA 1,25,00,000

BALRAM 1,25,00,000

PARVEEN 1,25,00,000

TARUN 1,25,00,000

Total Investment 6,25,00,000

Bank Loans

Punjab nation bank 50,00,000

Maharastra bank 50,00,000

S.B.I. 75,00,000

Total Bank Loans 1,75,00,000

Startup Expenses

Land purchase 1,00,00,000

Building Construction 2,00,00,000

Remodeling 50,000
Other 50,000

Total Buildings/Real Estate 3,01,00,000

Capital Equipment List

Furniture 50,00,000

Equipment 50,000

Fixtures 50,000

Machinery 3,00,00,000

Other 50,000

Total Capital Equipment 3,06,50,000

Location and Admin Expenses

Legal and accounting fees 50,000

Prepaid insurance 50,00,000

Pre-opening salaries 1,50,000

Other 50,000

Total Admin Expenses 52,50,000

Advertising and Promotional Expenses

Advertising 50,000

Printing 25,000

Travel/entertainment 50,000

Other/additional categories 25,000

Total Advertising/Promotional Expenses 1,50,000

Other Expenses

Telephone 10,000

Total Other Expenses 10,000

Reserve for Contingencies 25,00,000

Working Capital 1,00,00,000

Summary Statement

Sources of Capital

Owners' and other investments 6,25,00,000

Bank loans 1,75,00,000

Total Source of Funds 8,00,00,000

Startup Expenses

Buildings/real estate 3,01,00,000

Capital equipment 3,06,50,000

Location/administration expenses 52,50,000

Advertising/promotional expenses 1,50,000

Other expenses 10,000

Contingency fund 25,00,000

Working capital 1,00,00,000

Total Startup Expenses 7,86,60,000

Security for Loan Land and Building

Owners

Your name here Raja singh

Other owner Nisha

Other owner Parveen

Other owner Balram

Other owner Tarun

Operating budget for three months

Expenses Jan Feb march
Salaries 1,50,000 1,50,000 1,50,000
Advertising 50,000 50,000 52,000

Insurance 50,00,000 50,00,000 50,00,000

Printing 25,000 25,000 23,000

Travel/
entertainment 50,000 50,000 50,000

Total operating
Expenses 52,75,000 52,75,000 52,75,000