Industry sector: Retail and wholesale

Record shop: Capital expenditure

Now that you have given further thought to exactly how your business will operate, you might like to revisit your estimates of capital costs to make sure that you have identified all of the items you will need and any other capital costs you will incur.

You may want to consider installing a security system in your shop as CDs in particular are very small and easy to steal. You could simply display only empty cases on the shelves and then fill them when the customer comes to pay (this effectively cuts down on theft but increases the workload of staff which potentially could lead to big checkout queues; it's also not a particularly practical solution if you sell vinyl rather than CDs) or you could use a tagging system which triggers an alarm if unpaid for items are removed from the shop.

Don't forget to include any expenditure on your shopfront such as sign writing, or having your logo and livery put on any vehicles.

If you are paying cash for all the items you are buying for your business, enter the amounts - including VAT - in the months when you expect to pay for them.

If you decide to buy some items on hire purchase, or with a loan, enter the deposit and the monthly payments in the months in which you will pay them. These payments will be made up of both capital and interest. Enter the capital here and the interest under 'Bank/finance charges and interest' in your cash flow. The agreement will identify the amount of interest payable annually - if you deduct this from the total amount you have to pay each year the balance is the capital.