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Cost Amount How Often Start Up/Running Cost Equipment £6000 One Off Payment Start Up Premises £110,000 One Off Deposit and Mortgage Start UP * Deposit £10,000 One Off Start Up * Mortgage £4000 Per Year Running Telephone (Line rental only) £100 Per Year Running Promotion * Leaflets £120 One Off Start Up * Newspaper £18 Per Week Running Shop Fittings £3000 One Off Start Up Materials (Food, Bags etc) £1000 Per Week Start Up and Running Electricity £60 Per Quarter Running Heating £50 Per Quarter Running Rates Wage £200 Per Week Running Worker Wages £311.60 Per Week Running Shop Sign £150 One Off Start Up Posters Signs etc £25 One Off Start Up Financial Plans Start Up Costs The total amount of money capital that must be raised before the company can operate is £18,845. Possible Sources of Capital Advantages Source Disadvantages Large amounts of money may be borrowed if banks thinks loanee will meet repayment schedule. Loan can be repaid in instalments. Bank Loan Only normally offers a short to medium term source of finance. Interest must be paid on top of basic loan. Large risk, company assets may be liable if repayment schedule is not met. Banks are very selective in who they lend to. Able to buy equipment and only pay a small down payment upfront. A Finance House pays the main cost of the items...

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