Research a small business you would like to work for some day. Based on your research, estimate what you think could reasonably be its income, liabilities, assets, and capital. Record this information in a balance sheet for the company. If you are unfamiliar with business you may wish to interview several small business owners and discuss what is involved in owning and operating their business, including the types of expenses that would be typical for that business in your area.
When starting a new business you will need to determine both the capital asset requirements and routine operating costs of the business. Capital assets include land, buildings, operating equipment, vehicles, furniture and fixtures and office equipment. Inventory is not a capital asset but is generally required for most businesses.
Consider and discuss how you will finance your new business. Remember that banks and other creditors will generally not loan money for operating costs or inventory. Creditors also set limits on how much they will loan to a new business and generally expect the owners to provide more than half the capital required to start a business.
 
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