Financial operation of the business to be measured against the forccast. The process of calculating the costs of starting a small business begins with a list of all necessary purchases including tangible assets (for example, equipment ,inventory) and services (for example, remodeling, insurance) , working capital,sources and collateral. The budget should contain a narrative explaining how you decided on the amount of this reserve and a description of the expected financial results of business activities, the assets should be valued with each and every cost.