When you want to start a new business, you need to know how much it is going to cost to get it off the ground. Many new business owners have a business plan but may not figure all their startup costs into said plan. To set yourself up for success, you need to take everything into account. Here are some common costs to include in your plan.
1. Building and Equipment
Whether you buy, build or rent your office space, the first thing you must decide is where your business is going to be located. Factor in the cost of the necessary furniture, equipment and supplies to get your business running. To lower costs, you may consider renting equipment, particularly if it requires frequent upgrades to stay current.
You will likely need some software in place to run your business. A reliable accounting program helps you keep your finances in order, and you will probably need specific software that relates to your business. Don’t forget to include fees for hosting and managing your website as well.
3. Operating Costs
When you start your business, you need money set aside to cover a few months of operating costs. Payroll must be met consistently from the beginning. Decide whether you will cover insurance needs with group captives or a traditional business package, and make sure you budget for monthly premiums. To have all necessary licenses and certifications in order before you open for business, you must be able to pay for the associated training and fees.
There are a few marketing basics to include in your plan. Signs and advertisements make your target customers aware of your business, and business cards are helpful when you make contacts. To lower marketing costs, you can incorporate some social media strategies.
While it’s important to have a great business plan, you must think about the practicalities of putting it in action. Drafting a realistic budget for your startup needs is crucial to your initial success.