Below, I’ve created a list of standard business startup costs you must know about!
If you run your own business and don’t know what to expect, this list is what you need.
Business Incorporation Costs
Part of your startup funding must go toward incorporation fees.
The expenses ensure you’re legally allowed to own and operate your business.
You can use a corporate lawyer to set up your business or file the paper yourself.
Product Inventory
Product expenses vary based on how much inventory you demand initially.
Regardless, it’s essential to incorporate shipping and storage costs into your product inventory expense.
If you need a small business loan, it’s vital to know (roughly) how much your product inventory will cost.
Business Equipment
Owning a business requires you to buy the necessary equipment.
The cost of this equipment will depend on the type of business entity you decide to open.
For instance, if your business is a cafe, you may need an espresso machine and coffee grinder.
Website Design/Development
An excellent, eye-catching website is a must in today’s digital world.
Therefore, regardless of your business structure, you must plan to create and maintain a website.
Also, websites ensure your website looks legitimate to new customers!
Business Insurance
Getting insurance for your business protects you from paying for damages, accidents, and errors out of your own pocket.
Most businesses get general liability insurance.
However, property and auto insurance may be something your company could benefit from, too!
CRM Software
One BIG mistake I made while starting my first business was waiting to implement a CRM system.
What is a CRM? CRM software helps with several business aspects, including the following things:
- Streamlines communications between employees and customers
- Boosts sales
- Organizes important contact information
- It helps businesses understand more about their target audience
- Uses automation to streamline business tasks
Although CRM software can be pricey up front, it helps your company earn way more money in the long run!
Physical Location
Depending on your specific business, you may have to budget for a physical location for customers to view your products.
When figuring out the monthly costs of an office location, ensure you factor in utility costs as well!
Furniture
Physical locations must be furnished to some extent.
You don’t have to go overboard while furnishing your retail space, but including the essentials helps your business look more professional.
Some kinds of furniture to consider having in your office space include:
- Chairs
- Desks
- Cabinets
- Shelving
- Tables
- TVs
Staffing & Employees
Depending on your business model, you might need help running your company!
Workers’ compensation can cost tens of thousands of dollars monthly.
Staffing and employee expenses vary based on the following factors:
- The size of your team
- Employee skill and experience level
- How many hours employees work
- Your business location
Advertising and Marketing
Your business plan must include marketing and advertising expenses.
You have to get your business’s name and mission out there to the public, and advertising is how to do it!
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