Work Out Your Start-Up Costs
ADMINISTRATIVE COSTS: These will include costs such as rent, utilities, office equipment, stationery and insurance.
TECHNOLOGY COSTS: The technology costs will depend on the kind of business you have. This will include both hardware and software costs as well as website creation and maintenance, internet and phone charges.
INVENTORY/WAREHOUSE/MANUFACTURING COSTS: Think about how much money it will cost you to manufacture or purchase the goods you wish to sell. How much will it cost to store them? How much do you need to spend on shipping or packaging costs?
PROFESSIONAL EXPENSES: This will generally include such expenses as the cost to hire an accountant or a lawyer.
WAGES/BENEFITS: Are you looking to hire staff? You will need to consider wages as well as benefits and taxes.
MARKETING: This again will be dependent upon the type of business you run but will include any marketing or sales materials, advertising costs, sponsorship, trade show fees and travel expenses.
Once you have an understanding of where your money will be going, you will be well prepared to start your budget. Try not to overspend in the begining on such things as marketing as you may find that the money you bring in does not cover such expenses. It is usually wisest to start small and build up, unless you have a huge budget to work with.
Don’t forget to leave a bit aside for unforeseeable events which may occur. It may take a period of time before your business is able to support itself but research and preparation is a good step in the right direction to making it happen.
TAGS: budget , start up costs , business planning