08 Sep, 2017
Best Small Business Start Up Costs
Best small business start up costs
One of the challenges of planning and getting a new business off the ground is to establish what your best small business start up costs is going to be. At best, it's going to be a stab in the dark or a wild guess, but there are some specific steps you can take to make your castings more realistic.
Why Estimate Your Costs?
But, before we look at where you can get help, we should consider why you need to get your estimate of start up costs to be as close to reality as possible. Firstly, if you are seeking bank finance the dreaded Business Plan is required! The Bank Manager is not going to be impressed by a comment such as, "I think my start up costs are going to be around £10,000 but hey, who knows!"
Secondly, you need to go into any new venture with your eyes open. You have to be as sure as you can on how much it's going to cost to get your new business started. There is nothing worse than getting 90% of the way there, only to fall at the last hurdle because you didn't cater for one major expense.
Lastly, as a best small business start up costs you are likely to only have a limited pot of money available. You have to priorities which costs are essential and which can be delayed until the business is more established. You can only do this if you have researched and understand what your costs are going to be.
Suppliers
If you are looking to cost your raw materials or partly finished stock for buy in then, as a key part of your financing, call your potential suppliers and ask for quotations. Tell them that you are starting up and they should be more than helpful, after all you could be a potential customer!
Examples of Start up Costs
If you haven't got the time to try any of the above (and there's no reason why you shouldn't find some time!) here are some of the key costs you will have to cover:
• Equipment
• Fixtures and fittings
• Installation
• Initial stock
• Advertising
• Decoration
• Legal and other professional fees
• Licenses
• Specialized computer software
• Up front rental payment
• Initial cash float
• Cash to cover trading for the first month or two until the payments start rolling in
The list is by no means exhaustive but it will provide you with the first step to finding out how much it will best small business start up costs.
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