Every person needs to estimate business start up costs in advance before even considering filing the paperwork to start the business. The reason you need to figure out the business start up costs is to see if you have enough money to make the company survive the first year of business. Here are ten tips on estimating your business start up costs.
1. You need to figure out how much it is going to cost for your household expenses during the time of starting your business. You need to have money to cover the amount or be able to get a loan to cover the amount.
2. You need to figure out how much it will cost money wise for your business to survive the first year. You need to have enough money for any extra additional costs that will come up every once in a while through out the year.
3. You also need to figure out everything that you need for the start up costs of the business. Remember, this amount is different than the amount cost for the survival of the company for the year. You need money for advertisements, chairs and office supplies, inventory, cash registers, and service supplies. You need to include some money in the start up costs for any other items that you may have forgot about.
4.You need to figure out how much it will cost money wise for your business to survive the first year. You need to have enough money for any extra additional costs that will come up every once in a while through out the year.
5. You can sell some items to earn some extra money for your business if you don’t have enough money. Just make sure the business is worth selling items for. You don’t want to end up broke due to selling everything just to have enough money to start the company.
6. You need to figure out how much it is going to cost each year for employee’s if you have any employees. Remember, you need to include business insurance, any health insurance, and of course workers comp payments. You also have to pay an extra fee to the city for any part time and full time employee’s that you have working for your company.
7. Your company needs to be able to get business loans just in case you end up running out of money during the entire year. Only take out a loan if you can generate enough sales to pay back the loan. If your business isn’t surviving very well during the first year then you might want to close it.
8. Depending upon the type of company that you are interested in starting then you might have to pay money to get certified for any tests. It is important to see which tests that you need to take to get certified and any other rules regarding your type of business. You need to figure out how the tests are going to cost and how often you need to take any tests. You might have to pay for any tests that your employee’s need to take.
9. You need to take into consideration how much food is going to cost for the entire year. You need to budget money in there for food and other basic expenses. This is important so that you don’t suffer during the first year of business.
10. Don’t borrow money from the bank unless you have to. If you borrow money from the bank then make sure to see if you can afford the interest on it. You don’t want the interest to be too high.