Start-up Costs for a New Business

by | Jun 23, 2017 | Best Business Helps | 0 comments

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Developing a Start-up Cost Worksheet is a crucial step to open a new business. A start-up cost worksheet will give you an idea about how much budget you need to open the doors to your business.

How to Calculate Start-Up Costs for a Business

Each business is different, and needs its own specific expenses and allocation of its budget. Here are some useful tips on how to calculate start-up expenses that fit your business.

What Are One-time Costs & Operating Costs?

One-time Costs
– Building / Real Estate: security deposit for rent, first month rent, down payment, etc
– Start-up inventory: inventory, advance deposits to suppliers, etc
– Administrative expenses: licenses, permits, insurance, utility deposits, supplies, professional fees, etc
– Marketing & promotional expenses: advertising, business cards, brochure, flyers, website setup, etc

Operating Expenses (ongoing expenses, working capital): rent, utilities, vehicle & travel expenses, office supplies, banking feeds, credit card fees, loan payments, salaries to employees and the owner, etc.

* To open a business, it’s recommended to have a cash reserve for three months working capital.

Source

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Start-up Costs for a New Business

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