Describe the business, and then do a rough calculation of startup costs.

Assume you are going to start a simple e-business from scratch, using no existing equipment or materials. (Please discuss a startup business of a clothing boutique).  Briefly describe the business, and then do a rough calculation of startup costs, following the list provided in



Section 4.1.1.Not every business has the same startup expenses. The following (listed alphabetically) includes some of the costs to build into a startup budget:


•Accounting, consulting, and legal


•Advertising, marketing, and public relations


•Business plan


•Business travel


•Communications (including telephone and cellular service)


•Computer equipment and software


•Feasibility study




•Interest on loans


•Internet Service Provider (ISP) and Web site hosting fees




•Labor (employees and contractors)


•Market study


•Merchant account fees


•Office furniture, equipment (such as copy and fax machines), and supplies


•Order processing/shipping


•Phone line (toll-free number, where applicable)


•Printing and design for marketing materials, business cards, stationery


•Rent and utilities (such as electricity, heat, water, and sewer)




•Web site design and maintenance (Holden 99-100)


Holden, Greg. Wiley Pathways E-Business. Wiley, 03/2008. VitalBook file.


The citation provided is a guideline. Please check each citation for accuracy before use.





Research costs that is realistic for the area in which you live. Be generous in your estimates and avoid cutting corners on any expenses.

Publicly held e-commerce companies (, for example) must publish financial statements with their annual reports, which are available online. Access a recent annual report for one of these companies and review the balance sheet. List which company and record amounts for the following: current assets, total assets, current liability, total liability, and owner’s equity. Prove that the balance sheet balances by applying the appropriate equation which can be found in our text. (BTW it is not necessary to copy the entire financial statements of your selected company into your paper, just use the requested data elements – current assets etc.– to prove the balance sheets are in fact in balance)

Response should be no less than 2-3 pages (not counting the cover page and references page), supported with credible references and submitted in a APA format.

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