-
Step 1
Find out the cost of the office space you'll use. Calculate the rent, lease or mortgage costs per month. Include the cost of all utilities like water, electricity, cable, telephone and gas. Include air conditioning and heating and calculate the cost of half a year of each.
-
Step 2
Determine what equipment you need to run your business. Include the cost of tools, computers, building materials, vehicles and even gas. You will need certain items to start and you can buy other tools as you can afford them.
-
Step 3
Include advertising and marketing costs in your calculation. You will need to market your services if you want your business to grow and turn a profit. Calculate the cost of business cards, flyers, brochures and signs. Add in the cost of labels and packaging.
-
Step 4
Remember to calculate hidden costs like licences, business fees, lawyers, accountants, taxes, bank loans and contracts.
-
Step 5
Use a start-up kit from a trade association to help you calculate your start-up business costs if you aren't sure what costs to include. Use the sheets in the kit to calculate every expense.
-
Step 6
Visit others who have started small businesses and ask what hidden start up costs they have discovered. Talk to those in the handyman business and those in similar trades. You want to know where you will be spending money, so there are no surprises.
-
Step 7
Calculate the cost of each start up item and then multiply this number by several months so that you have a real idea of the cost to run the business for several months. You may not make a profit in the beginning and you don't want to run out of money unexpectedly.
