Start Up Costs vs Revenues

Forget about first revenue for a moment. On what date was your business operational and open for business? What kind of business is it? retail? wholesale? service?

What have you done so far to solicit customers/clients?

ChEAr$$$, Harlan Lunsford, EA n LA

Well, understanding that every case is different, I had hoped for a generic answer. But I'll set out some parameters. Still I'm looking for specific references for accuracy.

Oct 2007 Bought a shed to house inventory Nov 2007 bought plant seedlings (inventory) Dec 2007 advertised and created bank accounts...got licenses... paid utilities (water for plants) fertilizer Open for business but no sales.

Jan 2008 sold $4000 worth of plants.

Suppose was 2009 before sold plants?

Key here is "open for business", and since you had advertised, customers were expected at any moment. Thus I would choose Dec 1, 2007 as opening date of business. the shed will be depreciated starting in 2007 as will other expenses which will create a loss for 2007.

But it wasn't, so there.

Congratulations though. The nursery business can be iffy and subject to great variability. Example of course is down here in the South last summer. as long as it still rains, I have a small creek by side of my property, but come June, I'm not so sure i'll have water for my flowers and tomatoes. Or my cotton plants which I plant each year as tradition.

ChEAr$$$, Harlan Lunsford, EA n LA in the land of cotton