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Jungle Jumps eBook on Starting a Bounce House Business 29

Website ( Domain, Hosting, Website creation)Business Entity (LLC ,S Corp)Business Licenses ( fictitious business name filing)General Liability Insurance Advertising ( Flyer, Business Cards, Vehicle  Magnets)Supplies and Tools ( Rag, cleaners, Vacuum etc..) TotalTotal  of Initial Equipment and Start-up Determine your Monthly CostsAs for ongoing costs (these are usually monthly costs) here are what you will typically run into:•    Storage facility for the inflatable products•    Transportation for the products•    Advertising and promotion•    Salary of owner•    Utilities – Telephone / Internet connection•    Business Insurance•    Legal and other professional feesWhen determining ongoing costs, you will have to figure out what you will need to maintain your business on a consistent month-to-month basis. When you take a look at your financial statements, this will help you see what your expenses are so you can adjust these if need be. When you consider your initial and ongoing costs, always add extra money to each and consider this miscellaneous.  Unforeseen costs do pop up every now and then, so be prepared for them. Here’s a worksheet to help you calculate your monthly expenses: your Breakeven PointIt is very easy to determine your business’ breakeven point. You just merely go by a set formula. This formula is: breakeven = fixed costs/gross margin percentage. Fixed costs are recurring monthly expenses that do not change much. Gross margin percentage of a product or service means its profit divided by its price. Here is an example:Add all your direct and indirect costs. For example, let’s say you have total direct and indirect costs of $30,000 a year. Now, let’s say you estimate you can sell $10,000 worth of stuff for the year. Now, let’s say you profit $50,000. Now take the $50,000 and divide that by $10,000 and you get your gross margin percentage of 5. Now, divide $30,000 by 5 and you get $6000. That is your breakeven point. Here is a link to a template you can use to work with your balance sheet. Watch the video. It will really be helpful. Here is a link to a calculator that will help you find your breakeven point: