CAPITAL ASSETS IN OPERATING PLAN

Capital Assets, also known as fixed assets, are economic resources that have long lives before they are "used up" or consumed. Examples of capital assets include; office equipment (computers, fax machines, photocopiers, etc.) office furniture (office desk, work stations, fixtures, etc.), buildings, automobiles, production equipment, land, and other assets that have an useful life of more than one business cycle.

If your proposed business requires capital assets, now or in the near future, the following items should be discussed under the operating plan of your business plan.

• a listing of each capital asset needed for the operating plan,
• a description of each capital asset required
• the reason why each capital asset is needed,
• each asset's estimated cost should be discussed in the operating plan,
• the supplier you plan to purchase each capital asset from,
• the expected useful life of each capital asset,
• the depreciation rate each year on each capital asset.

If you plan to invest any personal capital assets into the business, such as a computer or automobile, be sure to include it under the capital assets section of your operating plan. Moreover, list all capital assets you intend to invest into the company, each capital asset's appraised value, the name of the appraisal company), and how each capital asset will benefit your planned business venture. Note: written appraisals should be requested so that you can include them under the appendices section of your business plan.  If appraisals are not required, the operating plan should estimate each asset's current market value.  Be fair in your estimate and be sure to disclose that these values are your best appraisals.

For more information relating to the Components of the Operating Plan, visit to the section labelled Operating Plan.