Controlling Your Startup Business Expenses

page 1 of 8

Startup business costs can range from a hundred dollars to several millions. It really doesn't matter what the amount is, as long as it fits your business plan.

Following are some common startup costs you should plan for. Just remember, it is impossible to present anything exact or average as every business is unique and costs are not the same across the country. Find what applies, adding whatever is needed leaving what doesn’t apply.

Seed Money

Every business needs seed money. For some who fail, this is where it starts, they rely too much on borrowed money and not enough on built up savings. This site is about debt elimination or keeping debt as low and manageable as possible. Too much debt will create failure before you ever get really off the ground. Expect to see a profit after a couple of years or several years. Amazon, as an example, did not see a profit for a long time, yet they always had a manageable level of debt or they would not be around today.

So, just how much will go to start up costs for a new business? How much do you have in savings to invest into your business? Obviously, much of it depends on how much you can do yourself and what you cannot do yourself, will need to be contracted out, and this is the power of the Internet, you have a vast resource of quality people at your finger tips.

Just how much seed money you will need is difficult to judge for reasons already stated. Setting up a good budget, a part of a business plan – even a very simple one, from onset will give you the best idea of how much you will need. A home secretarial service will cost less to set up than a manufacturing business. So, create your budget, modify it as you learn what goes into your business – just do not rush it and try to set up a business before you are ready.

Rent

Plan to have 6 to 12 months minimum of rent as you will not be profitable in this time period and you may need to pay this. One way to cut the expense is to ask if you paid several months in advance if you could get a discount.

The place should be conducive and comfortable for meeting clients/customers. A solid business address helps establish your image. A plush high end office is not needed; comfortable is fine. You may even start your business at home, cutting this expense tremendously.

page 2 of 8 >>

If this website helped you find your financial future we ask you to please give as a way to say Thank You. Not only does it support this site, is is a way to give it forward so others may find their way toward financial security. Please consider giving today. Thank You.

top of page