Question

It's very important to determine how much cash your new business will need to open and operate smoothly. Therefore, you must know how much capital you will need in order to cover all business expenses until you will reach the break-even point. Note that your business should have enough cash to cover all projected expenses for at least six months.

create a list of all your projected expenditures for a car dealership. The following steps can help you get started:

First Step - List of all needed assets (equipment, furniture, fixtures, supplies, software) and people needed to start and operate your business

Second Step - List startup costs for inventory, marketing, sales, permits, needed market research, licenses, certificates, initial investment, legal fees, or professional charges

Third Step - Compute your monthly (min. 6 months) fixed expanses such as rent, insurance, utilities, phone, lease, health insurance, loan payments, taxes, Internet, shipping and other services,

Last Step - Estimate your salary, employees or hired contractors

Include a table with all projected monthly expenditures for at least 6 months

Briefly explain your Start Up Costs items

Answer 1

Cost at Step 1

Items	Number required	Each cost	Cost
Photocopier	2
Amenities, AC’s/Refrigerators, Air Purifiers etc.	-	-	$25,000
Office Chairs	25	$100	$25,00
Visitor Chairs/ Sofas	-	-	$10,000
Office Tables/Stoers/Closet	Various Size and Shape		$5000
Multipurpose Tables			$5000
Fixtures for Office, Display and Lounge			$25,000
Stationary (Initial)			$2000 (Six month)
Pantry supplies (For Begining)			$1000
software			$10,000
Computer			$10,000
Printer			$3000
Water dispenser			$1000
Misc. inventories			$2000
		Total	99,000

Cost step 2

Activity	Fees /Expense
Initial Inventory investment (For getting Automobiles and accessories)	$50,000 (One time to start)
Marketing, sales	$5000 Per month for initial Six month and may further be readjusted as per requirement
Initial Permits needed	$ 5000
Market research	$10,000 (for first year)
Licenses, certificates	$5000 (Annual/Lifetime)
Legal fees, and professional charges	$5000 Annual
Total Expense	$80,000

Cost at Step 3

Recurring expanses
Power/Electricity Connection	10,000
Facility Rent	$5000 (Long term Lease agreement)
Insurance,	$ 1000
Utilities (Pantry, sanitation, Maintenance of machinery etc)	$2000
phone	$1000
Health insurance	As per legal provisions
Loan payments	Variable (Deferred payment for first year as per loan agreement)
Taxes	Percentage of sales revenue; Added in sales invoice to buyer to cover tax. Tax on profit Almost Nil for first six month.
Internet	$500
shipping	$2000
Security Services	$1000
Total	$22500

Cost at Step 4

Job	No. of persons required (A)	Salary per month (B) $	Cost per month	Cost for Six month (AXBX6) In $
Sales Staff/Adviser	3	2500	7500	45000
Reception	1	2500	2500	15000
Manager	1	5000	5000	30000
Accountant	1(Contract)	2500	2500	15000
Cashier	1	2500	2500	15000
Service Adviser	2	2500	5000	30000
Service staff	4(Contract)	2500	10,000	60000
Store In charge	1	3000	3000	18000
Housekeeping/Helpers	4(Contract)	2000	8000	48000
Multitasking Staff	3 (Contract)	2000	6000	36000
Security persons	3 (On contract from service provider)	-	4500	27000
Total			56500 (monthly Hr expenses)	$339000 (For Six month HR expense for salary mainly)

From above we need approximately total of $540,500 to start a simple Automobile dealership and meet out the expenses within six month including one time expenses.

Out this amount about $339000 will go towards Manpower salary expenses.

Please note that various cost that I have shown are my assumptions (Not based on research). You can change these cost to get more realistic picture of your region/city/country.