Tressie's niece wants to open a boutique household goods store. Tressie has read her business plan and is quite impressed. She is considering acting as an angel investor and giving her niece the $10,000 she needs to secure the retail space and some of the inventory for her store. What kind of budget should Tressie ask to see before making her final decision?

Question

• cash budget
• start-up budget
• operating budget
• sales forecast budget

Answer 1

Tressie should ask to see a start-up budget before making her final decision. This budget will outline all of the estimated expenses and investments needed to launch the boutique household goods store, including costs for securing the retail space, purchasing inventory, hiring staff, marketing and advertising, and other start-up costs. This will give Tressie a clear understanding of how the $10,000 will be used and whether it is a feasible amount to kickstart the business.