INTERACTIVE MONTHLY OPERATING EXPENSES

It is important that you determine your financial capability to invest in a franchise. This can be more critical than your compatibility with franchising.

This table will assist you in calculating the expenses that you need for operating capital during the first three months of operation.

TABLE 3
MONTHLY EXPENSES
Personal living expenses $
Employee wages $
Employee fringe benefits & payroll taxes $
Building repayment/rent $
Maintenance $
Utilities $
Insurance $
Advertising $
Supplies $
Postage/Shipping $
Transportation $
Inventory replacement $
Taxes $
Royalty fees $
Other $
TOTAL $
*TOTAL X 3 $

* - Multiplying by three provides you with an estimate of the operating capital that you will need. This would be enough money to operate for three months without having any income. Some experts recommend that you also plan on six to twelve months for personal living expenses. The reason for this is that it may take that long before you can withdraw any money from the business.