If you were going to start your very own business today, what would you start? What would you do? Would you provide a service? Would you sell a product? And what would your role be in the business? Now, ask yourself how much it would cost to actually start your business. How much would it cost to let people know you started your business? How long would it take before folks starting either buying your product or using your services? And then what would your overhead costs be? Then you have to start thinking about licensing costs and taxes to pay.
If it’s your first business, estimating start-up costs is uncharted terrain for you – and that can be completely terrifying. Luckily, there are lots of resources out there for brand-new business owners. The best way to estimate your business start-up costs is by drafting a business plan. Keep in mind many of the start-up costs may be recurring, so you’ll need to keep paying them over and over again, either on a monthly, quarterly or annual basis: rent, office supplies and payroll.
Additionally, when calculating your business start-up costs, a good rule of thumb is to be able to cover six months’ worth of expenses up front. So don’t count on your businesses’ revenue to start easing your costs until after that early period is over. You’ll want a cushion while you get your feet under you and work on attracting business.
*Start-up Expense Estimated Cost
Incorporation Fees Under $300
Office Space $100-$1,000 per/ee per/mo
Inventory $17-25% of total budget
Marketing 0-10% of total budget
Website About $40 per/mo
Office Furniture & Supplies 10% of total budget
Utilities About $2 per/sq ft of total office space
Payroll 25-50% of total budget
Professional Consultants $1,000-$5,000 per year
Insurance An aver of $1,200 per year
Taxes Variable, but 21% corporate rate
*Reported SBA 2018
Now that you’ve had a chance to begin the mental exercise, let’s actually consider a much lower cost and highly effective option. What if you could just partner with someone who is actually doing what it is that you’d like to do? What would the cost be involved and how much time would it take.
With all of that in mind …………….. here is an option to strongly consider. Work with us, start making money and begin building your future. You then will be able to start building your very own dream business and not be in tremendous debt just starting out! You never know, you might actually find you enjoy what we do a lot more than you think!
Let’s talk soon.