Sample Cost and Financing Sheet for Terra Engineering

Here's an example. If your total start up costs are $90,000, you will need to break this amount down into capital, marketing and business support costs. Let's say, you need $68,000 in capital, $20,000 in marketing and $2,000 in business support. You will need to break each item into a separate component and add a financing portion to it.

Both sides have to balance out.

To put in bluntly, the cost and financing plan will anchor your financial plan. The costs of each item will directly have an impact on your first year income and cash flow. The costs and financing will play a huge part on how your balance sheet comes together.

Please remember that this is a fictional company and fictional funding sources. However, the general outline is to help the business plan reviewer understand what it is you are asking for in terms of start up costs.

Also remember for any major capital purchase, you will always provide quotes at the back of your business plan in the form of an appendix. These quotes will correspond to the start up costs.

Terra Engineering
Projected Funding and Financing

Projected Costs

Financing

Capital & Operating $ Capital & Operating Amount %
         
Working capital $20,000 Cash equity $10,200 10%
Office renovations $5,000 SPA funding $40,800 60%
Office equipment/furniture $6,000 Commercial financing $17,000 40%
Specialized field equipment $27,000      
Specialized Software $10,000      
Sub total $68,000 Sub total $68,000 100%
         
Marketing
$
Marketing
$
%
         
Start up/on-going activities $20,000 Cash from operations $8,000 40%
Marketing   SPA funding $12,000 60%
Sub total $20,000 Sub total $20,000 100%
         
Business support
$
Business support
$
%
         
Business management costs $2,000 Cash from operations $500 25%
    SPA funding $1,500 75%
Sub total $10,000 Sub total $10,000 100%
         
Total project costs
$
Total project financing
$
%
         
Capital & operating $68,000 Cash equity $10,200 11%
Marketing $20,000 Cash from operations $8,500 9%
Business support $2,000 Commercial financing $17,000 20%
    SPA $54,300 60%
         
Grand Total $90,000 Grand Total $90,000 100%

Please study this cost and financing plan closely because your financial statements will hinge on its accuracy. Look closely at these figures and compare them to whats on the balance sheet. You will notice what items are included on the balance sheet such as the fixed assets, loan, equity and depreciation. This will help you place those items on the balance sheet.

Click here for a cost and financing plan template

To see how the cost and financing plan fits into a companies complete financial plan, please see our sample financial plan here.

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