You need to determine what fixtures you will need to furnish your new business. You should talk to suppliers and contractors to get estimates for counters, storage shelves, cabinets or display stands, a cash register, special lighting, an outside sign, etc.

At this point, you should decide whether you will be buying these items or leasing them. If you buy the fixtures, you will make a one-time outlay. If you lease them, you will have monthly payments. You should treat your lease as a monthly outlay by recording three times your monthly lease rate.

Obviously, leasing your equipment will reduce your initial capital requirement. Leasing also provides flexibility. By leasing equipment, it should be possible to upgrade or change your equipment to meet your needs as your business grows and changes. In any event, be sure that your attempt to reduce your initial capital requirement does not jeopardize your chances for being profitable.


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