| University of Phoenix Faculty Material |
| Kudler Opening Budget Startup Costs |
| Construction |
| Site preparation | 100,000 |
| Building | 1,000,000 |
| Trade Fixtures | 400,000 |
| 20% CONTINGENCY | 300,000 |
| | | SUBTOTAL: | 1,800,000 |
| Operating Capital |
| Marketing/PR | 50,000 |
| Launch Event | 25,000 |
| Equipment | 50,000 |
| Inventory | 750,000 |
| Operating Supplies | 10,000 |
| Legal fees | 25,000 |
| Permits | 10,000 |
| Insurance | 25,000 |
| Preopening Salaries and Travel | 125,000 |
| 10% Contingency | 107,000 |
| | | SUBTOTAL: | 1,177,000 |
| Occupancy Cost |
| R E Taxes | 12,000 |
| Utilities | 10,000 |
| | | SUBTOTAL: | 22,000 |
| TOTAL | 2,999,000 |
| Capitalization Plan |
| Cash from Principle Owners | 300,000 |
| Cash from Venture Capital Partners | 600,000 | Preferred return of 80% of net profit until principle is paid, then 10% of net profits |
| Bank Loan | 2,100,000 | 7.5% APR on a 15-year term |
| | 3,000,000 |
santth
fin375r1_kudler_opening_budget_1.xls
