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Step 1
Estimate costs for inventory and/or materials. Choose your suppliers, then figure out how much back stock you will need to maintain. Calculate how much this will cost initially. Remember to include the price of shipping and taxes in your estimates.
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Step 2
Determine costs for equipment, supplies and possible maintenance. This means both purchase and repair of machinery -- including computers, printers, scanners and fax machines -- and also the regular purchase of everyday items like office and cleaning supplies.
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Step 3
Figure out the costs for your facilities. Be sure to factor in not only rental costs, but also things like furniture, utilities, building maintenance, transportation (including vehicle maintenance and fuel) and insurance.
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Step 4
Calculate labor costs. If you plan to have any employees, determine both the cost for the number of hours you plan to employ them each week, and the cost of the payroll service you may use.
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Step 5
Make room in your budget for advertising. Include both the initial, heavy advertising you will need in order to get your new business off the ground, and any continual advertising you want to do in the future.
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Step 6
Figure out your weekly costs, and determine what your gross earnings will have to be in order to turn a profit. If you are selling retail goods with suggested prices (or industry standard prices), this number will indicate the necessary number of weekly sales. For the sale of services or products you create yourself, your required earnings should inform both your goals for sales and how you determine prices.
