Administrative Costs

You are now ready to add administrative costs to your budget. Please discuss the types of administrative costs that will be required for your business.

  • Will you need to rent a building or will your business be home-based?
  • Will you need to advertise?
  • Will you require electricity and other utilities?
  • Will you need a manager to oversee the business?

Think about any administrative costs that will be required to get the business started and to operate over the first year. Add these costs to your spreadsheet in the next category called selling and administrative expenses. Once you have added these costs, you are ready to calculate your projected net income for each month and for the year. Add that as the final amount on your spreadsheet. Include your table as an attachment to your initial discussion response.

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