How to Calculate Business Start Up Costs
Calculating start up costs for a new business may be a bit time-consuming, but it is well worth the effort, as making your way into a business only to find out that you don't have quite enough to get up and running is all too painful. Starting your own business may seem like a huge endeavor, but planning the financial beginnings can make for a great prize.
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Things You'll Need
- Pen and paper
- Computer and printer
- Calculator or software that will allow you to work your figures
- Telephone
Instructions
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Keep records of what will be charged regarding money that you may want to pay out for incorporation, any legal protection necessary to your industry, business insurance and worker's compensation.
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After careful research of the finances and being fairly certain to have enough cash to last six months to a year, you're on the right track. It is now important to make arrangements to rent, lease or perhaps purchase some office space. The preference of many people is to have the "home office," however, it's not always that physical component that makes its way into comfy fruition. In bringing this office into the picture, you'll need to consider the rent cost. If there is some remodeling or other changing in the office or garage space that needs to be done before occupancy, that too must be figured.
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With that cash allowance in mind, use the next step to further your preparation by looking at the office supples, perhaps specialized items and furniture you'll need. Things like computers, printers, paper, ink and telephones are absolutely necessary. You'll have to buy a comfortable chair as well, for anyone who will need to work in the office all day. Get a desk that holds the computer securely as well as any chairs needed for you or customers. A coffee table and magazines, books, vase, paintings that you no longer want in your home can also be used.
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You'll need to be certain to have plenty of the sale items/samples, if that is in fact the line of work that you're in (perhaps a retail shop). When the office is set up, and you've hired who you need to hire after having prepared everything, say your business deals with creating custom window coverings, and you have your own catalog. It's important to have samples of your work within the office, such as fabric, drawings perhaps, computer programs that might allow clients to share ideas with you, and you with them. If your business is within the construction industry, your office may feature all that listed above with a nice computer program and plenty of sample house plans.
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Tips & Warnings
There is a small business planning government website that is a must-see in helping to get you started (see Resources).
It is wise to calculate a little higher than will actually be necessary as to contribute to profits as soon as possible.
