1. • Legal expenses: Rs.75,000.
• Marketing promotion expenses: Rs.2,20,000.
• Insurance (general liability, workers' compensation and property casualty) coverage at a total
premium of Rs.1,32,000.
• Pre-paid rent expenses for one month at Rs.100 per square feet in the total amount of
Rs.2,40,000.
• Premises remodeling in the amount of Rs.5,50,000.
• Other start-up expenses including stationery Rs.30,000 and phone and utility deposits
Rs.1,30,000.
• The required start-up assets of Rs.80,00,000.
• Start-up inventory of Rs.9,00,000 which includes:
– Coffee beans
– Coffee filters, baked goods, salads, sandwiches, tea, beverages, etc.
– Retail supplies (napkins, coffee bags, cleaning, etc.)
– Office supplies
• Equipment for the total amount of Rs.30,00,000.
– Espresso machine
– Coffee maker
– Coffee grinder
– Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.) -
– Storage hardware (bins, utensil rack, shelves, food case)
– Counter area equipment (counter top, sink, ice machine, etc.)
– Serving area equipment (plates, glasses, flatware)
– Store equipment (cash register, ventilation, signage)
– Office equipment (PC, fax/printer, phone)
– Other miscellaneous expenses
TOTAL START-UP COSTS : Rs.13,277,000.