Fixed Assets
Already Owned
List below assets you already own that you expect to use in your business. This list is
important for several reasons:
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To identify the assets that are available for use that do not have to be purchased.
To develop your business financial statement if you are planning a business
expansion rather than a start-up.
To develop information for the Personal Financial Statement.
To develop the information you will use to show your contribution
(non-cash) to the business.
Much of these assets may be depreciated for tax purposes even though you
already have them.
However you may choose to use this information, you should use cash value—it’s
current market value if the assets were to be sold. It is not appropriate to use the cost if
the equipment were purchased new.
The complete list will go in the Appendix.
ITEM (Complete Description)
CASH VALUE
Fixed Asset Needs
List below the fixed asset (equipment) purchases you anticipate for your business.
Remember that all purchases do not need to be new items. Start now to find the best
bargains. You should check prices for used equipment, demo-equipment, leasing, etc.
Remember, the less you spend for start-up, the sooner you can begin to make a profit.
Two words of caution: (1) Remember, you are still in the planning stage and making
purchases at this time is risky. This is a research activity. (2) Many business loans
cannot be used to pay off loans for items already purchased, so items should not be
purchased in anticipation of receiving a loan.
Example of determining depreciation: You purchase a computer and printer for your
business at a cost of $3,100. The useful life by IRS definition is 5 years (60 months).
Its salvage value is nothing after 5 years. You would depreciate it $620.04/year.
At the end of the first year, depreciation of $620 would be taken on the equipment. The
depreciation will be listed in the Profit and Loss Projection and then, after the first year
of business, it will be shown on the Profit and Loss Statement. (The IRS publication will
reflect some opportunities other than this method for depreciation.)
Need/Want
Item Description
Including brand, model, size, etc.
Start-Up Costs
Cost
Whether you are starting a new business, moving to a new location, opening a new
branch, or expanding your business, you will have some “Start-Up” or one-time
expenses. The following information will be needed to complete your Cash Flow as well
as in an application for funding:
1. Furniture, fixtures, machinery, equipment
 Purchase price (if paid in full with cash)
 Cash down payment (if purchases on contract)
 Transportation and installation costs
$
$
$
2. Starting inventory and supplies
$
3. Decorating/remodeling/leasehold improvements
$
4. Deposits
 Utilities
 Rent/leases
 Other (identify)
$
$
$
5. Fees
 Legal, accounting, other
 Licenses, permits, etc.
 Other (identify)
$
$
$
6. Other (working capital, etc.)
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

$
$
$
TOTAL
$
Less equity injection
$
Amount of Loan Request
Personal Budget
$
1. Housing Expense
Rent/House Payment
Heat
Electricity
Telephone
Water/Trash Pick-up
Cable TV
Repairs/Maintenance
Current Year
Sub-Total
2. Personal Expenses
Food at Home
Food Away from Home
Other Grocery Supplies
Clothing-Purchase
Clothing-Laundry
Education-Personal
Education-Children
Newspapers/Magazines
Medicines
Doctor/Dentist, etc.
Gifts/contributions/dues
Allowances
Recreation/Social/Hobbies
Sub-Total
3. Vehicle, Transportation
Purchase Payment
Gas, Oil Lube
Tires, Batteries, Filters
Repairs
Sub-Total
Personal Budget Continued
4. Insurance
Health-medical
Disability
Dental
Vehicle
Household
Life
Current Year
Sub-Total
5. Loans, credit
School
Personal
Credit Card
Automobile
Other
Sub-Total
6. Taxes
Federal, State-Income
Property
Other
Sub-Total
Budget Summary
Sub- Totals
Housing
Personal
Vehicle
Insurance
Loans, Credit
Taxes
Total Expense Year
Current Household Budget
INCOME
Please enter all sources and amounts of annual income.
(Totals must include spouse’s income as well as business owner’s)
Business Owner’s Income
(wages, commissions, tips, owner’s draw)
Spouse’s income (after withholding)
Child support/Alimony
Social Security/disability Income
Government assistance
(FIP, Unemployment, General Assistance)
Food Stamps
Rental/Housing Assistance (rent or utility)
Misc. Income (list source and amount)
a.
$
$
$
$
$
$
$
$
b.
$
c.
$
TOTAL ANNUAL HOUSEHOLD INCOME
$
EXPENSES
A. Fixed annual Expenses:
Rent/Mortgage
Property taxes
Car Payments(s)
Home Equity/Personal Loans
Insurance Premiums (life, health, etc.)
Monthly Payments on Credit Cards
$
$
$
$
$
$
B. Annual Household Operating Expenses:
Electric and Gas
Cable TV
Water, Sewer and Garbage
Telephone/Internet
Misc. Repairs/Maintenance
$
$
$
$
$
Household Budget Continued
C. Annual Food Expenses:
Groceries
Out to Eat
$
$
D. Annual Personal Expenses:
Child-care
Auto Maintenance (gas, parking, repairs)
Household items
(cleaning supplies, paper products, toiletries)
Doctor/Dentist
Prescriptions/Medications
Education (tuition, books, school lunch)
Gifts and Contributions
Clothing
Other Expenses/Spending Money
E. Tax Expense: (sole proprietor only)
State/Federal Estimated Withholding
Social Security Withholding
$
$
$
$
$
$
$
$
$
$
$
TOTAL ANNUAL EXPENSE
$
SURPLUS/DEFICIT:
$
Personal Financial Statement
A lender often sees a small business and the small business owner as one entity,
even if the business has been incorporated. For that reason, the lender will want
to know about the personal finances of the business owner. The lender may also
want to know if the business owner has assets that might be used as collateral
for the business loan.
The Personal Financial Statement shows your personal net worth which is
computed by subtracting what you owe (Liabilities) from what you own (Assets).
Using the following guidelines and form, find your net worth.
Assets (Items you own that have a cash value)
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Cash on hand, including money in your checking and savings accounts.
List the market (current) value of certificates of deposit, money market
funds, stocks, bonds, other securities, IRA’s.
Accounts/Notes receivable is a listing of money that is owed to you. For
example, you would list an IRS refund you are waiting for or a payment on
a lawn mowing job you did.
List each vehicle you own, including the type, model and year at its current
resale value. All vehicles have a salvage value of at least $50.
If you own real estate, list its marketable value or in some cases, its
taxable valuation.
List the cash value (not the coverage value) of all life insurance policies.
List other assets including household furnishings, recreational vehicles,
antiques, jewelry, and any other item that has a resale value and could be
used as collateral for a loan.
Liabilities (What you owe)
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List all your debts: loans, credit card debt, personal loans. Contact the
loan agencies and find out the exact amount of principal left on the loan.
Interest that will be paid in the future should not be added in.
If you have a mortgage on your home and/or other real estate, list the
holders of the first mortgage. List the holder of a second mortgage if there
is one.
List all other liabilities (money that you owe). These may include past
medical bills, outstanding judgments, student loans, back child-support,
etc. Do not list ongoing expenses.
Personal Financial Statement Continued
Assets
Checking Account—Acct. #
Savings Account—Acct. #
Stocks/Bonds/CDs/Securities
Accounts/Notes Receivable
Car—Model & Year
Real Estate Value—Address
Life Insurance
Other Assets: List
Bank
Bank
Total Assets
$
$
$
$
$
$
$
$
$
$
$
$
Liabilities
Balance on home mortgage
Mortgage Holder
Balance on Car (Bank)
Credit Cards (Company)
(Company)
(Company)
(Company)
Other Loans (List)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Other Liabilities (List)
Total Liabilities
Total Assets minus Total Liabilities = Net Worth
$
$