I've been researching costs for the last year for my business plan to open a microbrewery w/ tap room; equipment, supplies, fixed costs, variable costs, taxes, construction, consultation and on and on. I've estimated that I will need abou $400,000 for start up. My calculations are for the 1st 2 years. 1st year costs - before doors open for purchase equipment, licensing, lease, loan payments (principle will actuall depend on suggestions here), construction etc. Included in the $400,00 are second the second year when doors open. These costs are for inventory, insurance, monthly variable expenses and monthly fixed expenses. Paying back any loan and lease as well - basically everything I an think of as an expense.
My actual question: What amount of cash do you feel is the minimum I would need to put the plan into action? I'm not saying I'm going for the minimum, but I want to know what the minimum would be so I can see where I am with cash, what I will need to obtain. I want to go into business where I have a decent chance for success as it pertains to debt financing. Thoughts? dollar amount? ratio? percentage of debt vs. equity financing?
TIA
My actual question: What amount of cash do you feel is the minimum I would need to put the plan into action? I'm not saying I'm going for the minimum, but I want to know what the minimum would be so I can see where I am with cash, what I will need to obtain. I want to go into business where I have a decent chance for success as it pertains to debt financing. Thoughts? dollar amount? ratio? percentage of debt vs. equity financing?
TIA
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