Title: Describe business costs.
Course: Entrepreneurship (12053-I) > Section: Planning an Entrepreneurial Venture

Description should include

- the differences between fixed costs (e.g., rent) and variable costs (e.g., utilities, inventory)
- the differences between one-time startup costs (e.g., build-out, grand opening) and operational costs (e.g., utilities, rent, labor)
- incorporation and licensing costs.

Process/Skill Questions:

- What are the most important costs when starting a business? Why?
- What factors determine startup costs for a new business?
- What is the difference between startup costs and operating costs?
- How do startup costs affect potential sales?
- What are typical sources of startup capital?
- How much time should be allocated to ordering, receiving, and organizing for star-up?
- Why is the entrepreneur the driving force of the startup process?
- How are one-time costs different from continuing costs?
- Why is a startup worksheet helpful to a new entrepreneur?