Hello,
I'm preparing a business plan to present a project to potential investors.
The project would be start-up, new construction hospitality. To help, my family is willing to build the building at reduced cost vs typical, and subcontractors who perform what my family's contracting business does not directly perform are willing to come in at reduced price to help, given past good relations.
When projecting the various asset values related with the above, if the amounts I use come from the reduced estimated costs due to family (and related) support of the project, I'm underestimating these asset values.
Should I then estimate these asset values at typical instead? Or should I represent those items at our actual cost, and then add equity for the differences in some other item on the balance sheet (or wherever)? If so, what should it be entered as/called?
Much thanks in advance...
I'm preparing a business plan to present a project to potential investors.
The project would be start-up, new construction hospitality. To help, my family is willing to build the building at reduced cost vs typical, and subcontractors who perform what my family's contracting business does not directly perform are willing to come in at reduced price to help, given past good relations.
When projecting the various asset values related with the above, if the amounts I use come from the reduced estimated costs due to family (and related) support of the project, I'm underestimating these asset values.
Should I then estimate these asset values at typical instead? Or should I represent those items at our actual cost, and then add equity for the differences in some other item on the balance sheet (or wherever)? If so, what should it be entered as/called?
Much thanks in advance...