How to Calculate Start Up Costs Using Business Plan Pro

Starting a business is no easy task -- just walk to the nearest strip mall and see how many businesses have closed there in the past year. Luckily, there's a computer program called Business Plan Pro that small business owners can purchase to help them calculate the various costs of running a business, including the most important one: The start up cost.

Things You'll Need

• Business Plan Pro
• Calculator

Instructions

1. Purchase and load Business Plan Pro onto your computer. The standard edition retails for a little under $100. Once running, open the Starting Costs Calculator application.

2. The program will ask for the following numbers: (1) your initial expenses; (2) your cash reserve in the bank to be used before the company reaches a break-even level; (3) the price of the inventory that's needed to start your business; and (4) other assets, such as the price of improvements you plan on making to your business space.

3. Calculate all four numbers. These can be found through a combination of research (looking into similar companies to provide you with a blueprint for how much you'll need to spend on inventory and site leases) and gut-level predictions (how long you think it will take before your company breaks even). Consult a business adviser or colleagues who've opened up similar businesses.

4. Insert the numbers into the program where instructed and, after pressing enter, you'll have the amount of money needed to start up your new company. Good luck!

References

• Buy Business Plan Pro