Scenarios: Operating Budgets, Startup Costs, and Funding Options

Priya wants to open a small custom T-shirt printing shop. She has made a list of what she needs to get started, including a heat press machine, blank shirt inventory, a business license, and enough cash to cover her first two months of rent and utilities before sales pick up.

Which item on Priya's list is best described as a one-time startup cost rather than an ongoing operating cost?

• Utility bills paid each month

• Monthly rent for the shop space

• Heat press machine purchase

• Blank shirt inventory restocked weekly

Priya wants to raise $4,000 without giving up any ownership in her business and without taking on debt. Which funding option best fits her goal?

• Venture capital investment

• Angel investor funding

• Product-based crowdfunding campaign

• Small Business Administration loan

Priya plans to apply for a small bank loan to cover her remaining startup costs. Name one thing she will likely need to provide to the bank when applying for the loan.

Darius is creating an operating budget for his food truck, which has been open for three months. He wants to make sure he has listed all of his recurring monthly expenses so he can track whether the business is on track to be profitable.

Which of the following is an example of a recurring operating expense Darius should include in his monthly budget?

• The cost of a logo designed before opening

• The fee paid to register his business name

• Fuel and food supplies purchased each week

• The one-time cost of purchasing the food truck

Darius needs a small amount of extra cash to cover a slow month and wants to avoid a lengthy application process. Which funding option is most appropriate for this situation?

• A government grant for small businesses

• Venture capital from an outside investor

• A personal credit card or microloan

• An SBA loan requiring full financial statements

Darius notices his monthly expenses are higher than his monthly revenue. What is one action he should take to help bring his budget back into balance?