A startup plan is a necessary component of a business plan as it provides a detail of the initial investment required to start a company and the areas and assets where this investment will be utilized. The startup plan helps in identifying the sources and resources in the initial phase of the company so that capital can be generated accordingly to meet the startup requirements.
The startup investment required for establishing Electro-Light includes the amount necessary to purchase the required assets and satisfy the requirement of initial expenses. In order to start the company an estimated amount of $8.5 million will be needed to acquire assets necessary to start operations and $400,000 will be required to fulfill the requirement of startup expenses. The total initial requirements of $8.9 million will be funded with investment from shareholders and through loans and liabilities. It is expected that $1.98 million will be obtained from short term loans and $6.92 million from shareholders.
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