Course: Why businesses borrow money

Vanessa tallies up her total

To find her total startup costs, Vanessa adds up her one-time and recurring expenses and then subtracts her current capital. Based on her results, Vanessa determines that she has about $5,000 in startup costs. This is enough money to get her through the first month in her new commercial kitchen space.

(Total one-time expenses + Total recurring expenses) - Current capital

($2,380 + $3,325) - $750 = $4,955