{"id":5462,"date":"2019-05-16T11:12:12","date_gmt":"2019-05-16T15:12:12","guid":{"rendered":"http:\/\/caissealliance.absoludev.ca\/?p=5462"},"modified":"2020-04-21T14:00:57","modified_gmt":"2020-04-21T18:00:57","slug":"finance-your-business-establish-project-costs-and-project-funding","status":"publish","type":"post","link":"https:\/\/www.caissealliance.com\/en\/business\/growth\/finance-your-business-establish-project-costs-and-project-funding\/","title":{"rendered":"Finance your business – Establish project costs and project funding"},"content":{"rendered":"

Both new and expanding businesses need money to fund their projects. Your business must get funding for each item it requires to operate: working capital, ongoing expenses, tools, equipment, buildings, patents, etc.<\/p>\n

Once you\u2019ve established your needs, you must determine what sources of funding are available to meet them. This information is often presented in a table showing how each need will be met.<\/p>\n

Example<\/strong><\/h2>\n\n\n\n\n\n\n\n\n\n\n
Project cost<\/strong><\/td>\n<\/tr>\n
Land and buildings<\/strong><\/td>\n$200,000<\/td>\n<\/tr>\n
Renovations<\/strong><\/td>\n$50,000<\/td>\n<\/tr>\n
Furniture and equipment<\/strong><\/td>\n$25,000<\/td>\n<\/tr>\n
Vehicles<\/strong><\/td>\n$20,000<\/td>\n<\/tr>\n
Inventory<\/strong><\/td>\n$17,500<\/td>\n<\/tr>\n
Other start-up expenses (accounting, taxes and licenses, insurance, rent, supplies, etc.)<\/strong><\/td>\n$15,000<\/td>\n<\/tr>\n
Total <\/strong><\/td>\n$327,500<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n\n\n
Project funding<\/strong><\/td>\n<\/tr>\n
Contributed cash and assets (equity)<\/strong><\/td>\n$102,500<\/td>\n<\/tr>\n
Mortgage<\/strong><\/td>\n$150,000<\/td>\n<\/tr>\n
Equipment loan<\/strong><\/td>\n$55,000<\/td>\n<\/tr>\n
Line of credit<\/strong><\/td>\n$20,000<\/td>\n<\/tr>\n
Subsidies<\/strong><\/td>\n$0<\/td>\n<\/tr>\n
Total <\/strong><\/td>\n$327,500<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Funding your working capital<\/h2>\n

Determining how much working capital your business will need requires extensive research, reflection and planning.<\/p>\n

Working capital is the amount of funds required to cover day-to-day operating expenses. The amount of working capital you need is influenced by your business cycle. It must be sure take into account:<\/p>\n