| Course | MT207 Starting a Business |
|---|---|
| Unit | Unit 7 |
| Paper type | Startup cost worksheet |
| Length | About 660 words, 5 pages double-spaced |
| Format | APA 7 student paper |
| School | Purdue University Global |
| Program | BS in Business Administration |
| Updated | October 2026 |
Free sample paper for MT207 Unit 7
From a $21,500 Van to a $350 Bookkeeping Setup: A Unit 7 Startup Cost Worksheet
[Student Name]
Purdue University Global
MT207: Starting a Business
Unit 7 Startup Cost Worksheet
[Instructor Name]
[Date]
Clearline Vent Care, its quotes and every figure are composite and illustrative; bracketed figures stand where actual quotes would supply the numbers; the sources cited are real.
Block One: One-Time Costs
Each line below gives the item, the amount and its source, marked as quoted or estimated.
Used cargo van with shelving, [$21,500], quoted by two dealers; the lower quote is used. Rotary brush system and high-powered vent vacuum, [$3,400], quoted by an equipment supplier. Inspection camera, [$650], quoted. Airflow meter, [$180], quoted. Extension ladders, a roof ladder and a fall protection harness, [$1,150], quoted. Opening stock of rigid metal duct, clamps and replacement vent hoods, [$900], estimated from the supplier's price list for twenty repairs. Protective equipment, including respirators, gloves and eye protection, [$250], quoted.
Dryer exhaust technician certification course, [$450], quoted by the course provider. Business formation and licensing, including the LLC filing and the state business license with a city endorsement, [$400], estimated from state fee schedules. Insurance down payments for general liability and commercial auto, [$1,100], quoted by a broker. Website, booking software setup and a business phone line, [$700], quoted. Door hangers, a vehicle decal and printed leave-behinds for property managers, [$800], quoted. Accounting software and an hour with a bookkeeper to set up the books, [$350], quoted.
The one-time subtotal is about [$31,830]. A contingency of ten percent, about [$3,180], covers the cost increases and forgotten items that most first worksheets miss, bringing one-time costs to about [$35,010].
Block Two: Operating Reserve
The business will not cover its fixed costs of about [$4,250] a month from the first day. Revenue ramps as apartment contracts begin and homeowners find the service. The reserve is the sum of the monthly gaps between fixed costs and contribution until contribution catches up.
In month one, contribution is about [$700] from early homeowner calls, a gap of [$3,550]. Month two brings the first apartment buildings and about [$1,400], a gap of [$2,850]. Month three reaches [$2,100], a gap of [$2,150]. Month four reaches [$2,600], a gap of [$1,650]. Month five reaches [$3,000], a gap of [$1,250]. Month six reaches [$3,400], a gap of [$850]. Month seven reaches [$3,800], a gap of [$450]. Month eight reaches [$4,050], a gap of [$200]. From month nine, contribution covers fixed costs.
The gaps sum to about [$12,950]. Because ramps rarely go as planned, the worksheet rounds the reserve up to [$15,000], enough to absorb one more slow month.
The van is the cost everyone remembers; the eight months before break-even are the cost that sinks new businesses.
Total Requirement
One-time costs of about [$35,010] plus an operating reserve of [$15,000] give a total requirement of about [$50,010], rounded to [$50,000] for the funding proposal in Unit 8.
Federal small business guidance (U.S. Small Business Administration, 2024) advises founders to separate one-time expenses from ongoing ones and to plan for the costs of operating before revenue arrives, and this worksheet follows that split. Barringer and Ireland (2019) caution that new ventures often underestimate how long it takes to reach positive cash flow, which is why the reserve is built from a month-by-month ramp rather than a guess.
Notes on the Figures
Three figures deserve a caution. The van price depends on mileage and condition, and a cheaper van with more miles could raise repair costs later. The insurance down payment depends on the broker's final quote after the certification is complete. And the ramp assumes that two apartment communities begin in month two; if the first contract starts in month four, the reserve would need about [$4,000] more. Scarborough and Cornwall (2019) recommend that a founder hold enough cash to survive several months longer than the plan expects, and the rounding above is a small step in that direction.
References
Barringer, B. R., & Ireland, R. D. (2019). Entrepreneurship: Successfully launching new ventures (6th ed.). Pearson.
Scarborough, N. M., & Cornwall, J. R. (2019). Essentials of entrepreneurship and small business management (9th ed.). Pearson.
U.S. Small Business Administration. (2024). Calculate your startup costs. https://www.sba.gov/business-guide/plan-your-business/calculate-your-startup-costs
Reading the MT 207 Unit 7 instructions
Unit 7 typically asks for a startup cost worksheet that lists everything the business must spend before and just after opening. Most prompts want one-time costs itemized line by line, each with an amount and a source, and an operating reserve that covers the months before revenue catches up with costs. A contingency line is common, often ten to twenty percent, with a reason. The reserve should be built from a monthly ramp rather than guessed, using the fixed costs and contribution figures from your feasibility study. Mark which figures are quotes and which are estimates. Many sections want the worksheet as a working spreadsheet so formulas can be checked, sometimes with a short narrative. Include a modest owner's draw in monthly costs, since a founder who earns nothing for months cannot last. Close with the total requirement that the funding unit will use, and cite cost guidance in APA 7.
How the MT 207 Unit 7 example is put together
The worksheet opens with the van and works down through the brush and vacuum system, camera, airflow meter, ladders and fall protection, duct stock and protective gear, each with its source. Certification, formation, insurance, website, marketing and bookkeeping follow, and a margin note explains why marking quotes and estimates matters to a lender. The subtotal and a ten percent contingency bring one-time costs to about $35,010. The second block sets out the reserve month by month, from a $3,550 gap in month one to $200 in month eight, summing to about $12,950 and rounded up. The highlighted line contrasts the van everyone remembers with the eight months that sink new businesses. SBA guidance supports the split between one-time and ongoing costs, and Barringer and Ireland warn about slow cash flow. A notes section flags the three most uncertain figures, with a second margin note.
MT207 Unit 7 rubric: what earns full points
Startup cost worksheets are usually scored on completeness, sourcing and the reserve. Every one-time cost the business will face should appear, and graders look for commonly forgotten items such as insurance down payments, licensing, certification and bookkeeping. A source for each line, marked as a quote or an estimate, shows the figures can be trusted. The contingency should be stated with a reason. The operating reserve often carries the most weight, since it is where many students guess; a month-by-month ramp tied to fixed costs and contribution demonstrates real planning. Including an owner's draw in fixed costs shows realism. A total that carries into the funding proposal connects the units. Notes on the most uncertain figures show judgment about risk. SBA guidance, Barringer and Ireland and Scarborough and Cornwall should be cited, and formulas should work if submitted as a spreadsheet.
MT207 Unit 7 help: mistakes that cost points
Worksheets most often fall short by listing a few large items and forgetting the small ones that add up, such as licenses, protective equipment and software. Another frequent issue is an operating reserve of one or two months with no calculation behind it. Some worksheets leave out the owner's draw, which makes break-even look early and unrealistic. Others include no contingency, or a contingency with no stated basis. Sources are often missing, so a reader cannot tell a dealer quote from a guess. Be careful that monthly fixed costs match the feasibility study, since inconsistent figures across units are easy for graders to spot. If your section wants a spreadsheet, check that totals use formulas rather than typed numbers. Send our writers your feasibility figures and equipment list, and they can help build the lines, the ramp and a total that holds up.
Get an MT207 Unit 7 example written to your instructions
Rough figures are enough to begin: attach whatever cost notes exist, the Unit 7 instructions and the rubric. Each line gets priced from a named source, the contingency stands on its own line, and the reserve is built month by month. Delivery runs 24-48h, and the first custom sample carries no fee. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.
More MT207 papers and BS in Business Administration samples
- MT207 Unit 1: Discussion Board Post
- MT207 Unit 2: Business Idea Brief
- MT207 Unit 3: Market Research Summary
- MT207 Unit 4: Competitor Analysis
- MT207 Unit 5: Feasibility Study
- MT207 Unit 6: Legal Structure Memo
- MT207 Unit 8: Funding Proposal
- MT207 Unit 9: Seminar Reflection
- MT207 Unit 10: Business Plan
- MT203 Unit 7: Performance Appraisal Exercise
- MT202 Unit 7: Closing Analysis
- MT140 Unit 7: Motivation Analysis
- MT106 Unit 7: Academic Integrity Exercise
MT207 Unit 7 questions, answered
Should the owner's salary be included in startup costs?
In the reserve, yes. Most MT207 sections expect a modest owner's draw in monthly costs, because a founder who earns nothing for nine months is either living on savings the worksheet ignores or quitting early. The sample includes 1,800 dollars a month and labels it, so the reader can see that the break-even supports a living rather than only the van payment.
Is a ten percent contingency standard?
It is common rather than required. Some sections expect a stated rate between ten and twenty percent; others accept any rate with a reason. What graders look for is that the contingency is visible and explained. A venture buying used equipment might justify a higher rate, since repairs are harder to predict, and the footnote would say so.
Can the worksheet be submitted as a spreadsheet?
Often it must be. Many sections want a working Excel file so formulas can be checked, sometimes with a short narrative alongside. The sample follows whatever format your instructions name, and when a file is required, subtotals and totals are formulas rather than typed numbers, which lets a grader change a figure and watch the total move.
Where can I find a free MT207 Unit 7 sample paper?
The full MT207 Unit 7 startup cost worksheet is on this page. It itemizes one-time costs for a dryer vent cleaning venture with sources, adds a contingency and an eight-month operating reserve, and reaches a total requirement, with margin notes.
Why does the sample round the reserve up to $15,000?
The monthly gaps sum to about $12,950, but ramps rarely go as planned. Rounding up covers roughly one more slow month, and the notes show that a first contract starting in month four would need about $4,000 more.