Small Business Start Up Costs: How deep are your pockets?

One of the challenges of planning and getting a new business from the ground is to establish what the costs will be the starter. At best, it's going to be a leap in the dark or a guess, but there are some specific steps you can take to make your costing more realistic.

Why Estimate the costs?

But, before we look at where you can get help, we should consider why you need to get your estimated start-up costs to be as close as possible to reality. First, if you are looking for bank financing of the Plan must be feared! The bank manager is not going to be struck by a comment like: "I think my start-up costs will be about 10,000 pounds, but hey, who knows!"

Secondly, you must enter into a new venture with your eyes open. You have to be as safe as possible about what is going to cost to get your new business started. There's nothing worse than taking 90% of the journey, only to fall at the last hurdle because you have not met for a major expense.

Finally, as a start-up is likely to have only a limited pot of money available. You have to prioritize which costs are essential and which can be delayed until the business is more established. You can only do that if you study and understand what the costs will be.

Where can I go for help?

It 'easy to think that you have a good idea of ​​what the start-up costs are likely to be, but do you really? Once you think about it, a whole Pandora's box begins to open! But there are sources of help you can contact, who will ensure that there is no forgetting within the first week.

A good starting point is the support of the government of his country and business consulting agency. It is government funded organizations that are there to provide free and impartial advice on all aspects of running a business.

Call and book an appointment to see a counselor. They will have a wide range of materials and experiences that will give you a good foundation that will cover the costs. The service is usually free, and this is a cost that does not have to worry about!

Chamber of Commerce or Local Business Club / Group

If you have a local branch of the Chamber of Commerce or business group with formal or informal, then they are a good source of knowledge and information. Within the group there is a wealth of experience and the people who lived through it all - good times and bad times! You may be lucky enough to attend a meeting when the speaker is there just the topic you are looking for.

Colleagues and other business owners

If you do not have a club or group you can attend, then search business alone. Ask all your contacts to tell their own start-up experiences. What costs are budgeted for, what it costs that do not have budgets, where Overspent. Businessmen originals are usually happy to share their experiences and give advice. Hear what they have to say and take note.

If you do not have a circle of business contacts, bring the word to all your personal friends. Some of them have friends or relatives who are in business on their own. Ask for an introduction or referral. This 'warm up' before asking them to research your questions.

Bank Business Guide

Many banks offer complete brochures on marketing. Usually contain a model business plan which will include a section on start-up costs. Some go further and produce guides for specific industries and sectors. They provide a detailed analysis about the business, market, competition and estimated start up costs. Call your local bank and ask to meet the Small Business Manager / Advisor.

Suppliers

If you are looking for cost raw materials or semi-finished photographic buy on, as a fundamental part of your loan, call your potential suppliers and ask quotes. Tell them that you are starting and that should be more than useful, after all what could be a potential customer!

Examples of start-up costs

If you do not have time to try one of these (and there is no reason why you should not find a little 'time!) Here are some of the major costs that should cover:

* Equipment

I * Fixtures and fittings

* Installation

* Initial stock

* Advertisement

* Decoration

* Legal fees and other professionals

* Licences

* Specialized software

* In front of the rent

* Fund the initial cash

* Cash to cover trading for the first month or two until payments start rolling in

The list is not exhaustive, but it will provide the first step to find out how much it will cost to start.

Who said it would be easy?

Getting a new business from the ground is hard enough, even if you fully understand what is going to cost. Do it without any idea is not a recipe for success. Take some 'time to this exercise and you will be amply rewarded.

Robert Warlow
Small business success
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