Starting a new business is an exciting adventure, but you must properly plan your goals and expenses if you want to have a successful future. Start up costs for a business are typically divided into two main categories: One-time costs and recurring costs.
By figuring these numbers out, you can plan ahead for your business. Here are some main costs you should consider.
1. Rent/Lease
This will be your major cost. You can, of course, avoid this expense if you operate from your home. However, as your business grows, you may find it necessary to find a separate location for your business. Once you find a location, you must also determine utility costs and add them into your monthly expenses.
2. Initial Inventory
If you a starting a service, this cost should not be expensive. You may only have to pay for a few materials to help with your service. On the other hand, if you plan to operate a retail store or restaurant, you will need to invest in your beginning inventory.
3. Advertising
Your business won't grow without advertising. Make sure you only pay for the advertising methods that will truly benefit you. Your first marketing techniques should include radio advertisement, adwords for Internet marketing, and local directory placement. Some great marketing methods, such as a listing, are free.
4. Payroll
Determine how many employees you will need to help with your business and how much you will pay them. Don't forget to account for taxes.
Keep these costs in mind, and you should have no problem with your future expenses. Proper planning is the key to success.
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