Set Up and Break Even Analysis

How Not To Go Broke !
12 Golden Rules…

1. Make sure you have enough money to start business
2. As business grows make sure you have enough money
3. Keep on top of work in progress and invoice as soon as possible
4. Negotiate credit facilities and terms
5. Prepare a realist budget
6. Don’t ignore cash shortage
7. Make profit
8. Check costs
9. Keep up with changes
10. Don’t solve cash problems by lowering prices
11. Compare estimated costs with actual costs
12. Keep records

Business Overheads

General business overheads could be similar to the following:

• Business premises

• Staff and Professional fees

• General Equipment

• Transport

• Finance

• Public Relations

• Subscriptions

Charge out Rate

To ascertain charge rate you must:

• Cover all costs

• Make a profit

Ask yourself the following questions:

1. How much money do need to live on
2. How many hours do you have to work
3. What does it cost to run your business – overheads
4. What return on your investment do you expect

New Business Set Up Costs

Business set up costs could include the following:

• License fee

• Registration of business name

• Trade Association / Membership or Subscriptions

• Advertising

• Stationery / printing

• Insurance
  - Public liability
  - Tools and Equipment
  - Workers compensation
  - Motor Vehicle
  - Personal

• Expenses
  - Tools & equipment
  - Loan / Lease payments
  - Bank fees
  - Telephone
  - Contingency
  - Owners drawings / wage

If you are looking a getting into business or are already in business, Tony Taktak & Associates can show how to build wealth, through long - term investments.