This topic was brief and described the places one can look to when seeking help with the start up costs.
Canada Small Business Financing Program: http://www.ic.gc.ca/eic/site/csbfp-pfpec.nsf/eng/Home
Bussiness Canada: http://www.canadabusiness.ca/grants-and-financing/private-sector-financing/sources-of-private-sector-financing/
In this section of the module the topics of assets and expenses come into play, and the balance between them that is necessary to avoid debt.
Assets: are things that hold value, and are tangible resources that belong to the person or business.
Expenses: are the payments that you owe, the money that you spend, these are consumable payments, meaning that paying into them does not benefit the person or business. Example here is rent.
The point here is that if someone wants to make money, its important to think about spending money on assets, which increase in their value over time.
Below are some tools to assist in the calculations
The difference between start-up and operating costs:
Start-up costs: are the expenses necessary for setting up the business, before the business can open to the doors to the public.
Operating costs: include the costs to keep the business running.
We are back and talking about budgeting and its importance in the preliminary stages of business building.
I have always wanted to follow a budget, but being a student with limited income, and limited expenses (because I only do school) doesn't leave a lot of wiggle room with the cash flow.
I am happy to be able to talk about it again here in this module, in hopes of being able to apply it to real life later on.